A new study by Internet infrastructure consultancy the Dstream Group, titled "Frankfurt: The Digital Capital", has confirmed what the interconnection industry has long observed – Frankfurt, Germany, is the world’s leading hub for digital infrastructure. Ranking ahead of other major global centers such as London, Singapore, and the Bay Area (including Silicon Valley), Frankfurt now stands as the most significant Digital Capital worldwide.

A city defined by connectivity

Frankfurt’s rise as a Digital Capital is closely tied to the development of its interconnection ecosystem. Over the past three decades, the city has evolved from a financial powerhouse into the world’s largest and densest hub for network interconnection. With nearly 4,000 network connections and a whopping 200 terabits of connected capacity across 20 Internet Exchanges, Frankfurt surpasses all other metropolitan regions in interconnection density and infrastructure.

This development has not only enhanced digital performance across the region but also attracted substantial investment. Frankfurt’s data gravity – the pull of its interconnected ecosystem – continues to draw both domestic and international infrastructure projects, particularly in the data center sector. The recent news of US giant Oracle’s investment of more than a billion Euros in cloud infrastructure in the Rhine-Main region demonstrates this ongoing trend.

The economic value of interconnection

The study provides new insights into the economic contribution of Internet Exchanges (IXs) to both local and national economies. Using DE-CIX Frankfurt as a model, it estimates that interconnection activity in the city adds more than €3.7 billion annually to the German economy, and €340 million to the economy of the state of Hesse. These figures represent direct financial impacts from improved cloud and e-commerce performance, network resiliency, and localization benefits.

In addition to this, at least €2 billion per year is being invested in new digital infrastructure projects in Frankfurt – a figure that highlights the catalytic role of existing interconnection infrastructure in attracting further growth.

The characteristics of a Digital Capital 

To be recognized as a Digital Capital, a city must demonstrate high-density infrastructure across four pillars: Internet Exchanges, data centers, connectivity, and networks. Frankfurt ranks at or near the top in three out of four of these categories, with especially high scores for IX and network density.

Beyond infrastructure, the success of a Digital Capital also depends on factors such as regulatory environment, talent availability, investment attractiveness, and international business presence. Frankfurt's well-established position in the financial industry, its central European location, and its digital development strategy have all contributed to its global leadership.

Infrastructure for the next generation of digital applications

The future of interconnection is being shaped by real-time, latency-sensitive applications such as AI, autonomous mobility, fintech, and immersive technologies. Supporting these requires ultra-low latency infrastructure, built not only in centralized hubs but also distributed across regions and close to end users.

To enable this, interconnection platforms must evolve. The report identifies a need for:

• Highly distributed digital infrastructure, including hyperlocalizatioin at the deep edge.
• Integration of local, regional, and global interconnection infrastructure.
• Advanced technologies such as 5G Advanced, fiber, low-Earth orbit (LEO) satellite Internet, and eventually 6G.
• Automated, dynamic routing and infrastructure capable of supporting AI workloads.

These developments aim to reduce latency to near real-time levels, improve resiliency, and help companies ensure compliance with relevant data sovereignty requirements. 

Maintaining Frankfurt’s leading position

While Frankfurt is currently the global benchmark for interconnection, maintaining this position will require continued investment and planning. The report calls for the expansion of physical connectivity infrastructure, improvements in energy supply and workforce development, and policies that encourage innovation and international digital cooperation.

There is also an opportunity for Frankfurt to play a leading role in shaping European standards for future technologies such as 6G, reinforcing the continent’s digital sovereignty.

A global model for digital growth

Frankfurt’s transformation into a Digital Capital illustrates the broader potential of interconnection ecosystems to generate economic value, attract investment, and support innovation. As demand for high-performance digital infrastructure accelerates, the lessons from Frankfurt provide a valuable blueprint for other cities and regions aiming to strengthen their position in the global digital economy.

Access the full report: Frankfurt – The Digital Capital