German data center firm Nexspace has broken ground on its second facility in Graz, Austria, marking a significant expansion of its presence in the city. The company held a groundbreaking ceremony this week for the new building, which will double its capacity in Graz by adding approximately 600 sqm (6,460 sq ft) of additional IT space and around 2.2MW of power capacity.
The project underscores the growing demand for regional edge data center capacity across the DACH region, particularly as enterprises increasingly rely on data-intensive workloads such as AI and high-performance computing. Nexspace CEO Christian Zipp highlighted the strategic importance of the development in a LinkedIn post, stating, "With today's groundbreaking ceremony, we are starting the construction of our new data center and thus a project that is planned far beyond the next few years. Because we are not simply building additional data center space. We are creating infrastructure for a digital world in which data, AI and powerful IT are increasingly determining how companies can work, research and grow."
The four-story building will total 3,000 sqm (32,290 sq ft) and is expected to become operational around September 2027. This new facility is part of Nexspace's broader strategy to develop smaller edge data centers in regional cities and towns across Germany, Austria, and Switzerland, a market segment that has seen rising interest from enterprises seeking lower-latency computing resources closer to end users.
Nexspace, launched in 2023 and owned by investment firm InfraRed Capital Partners, has been steadily expanding its footprint since its first data center—a 2MW facility in Heidelberg—went live in late 2023. The company entered the Graz market the following year by acquiring a data center built and operated by COOLtec, which hosts telecommunications provider Magenta Telekom. That existing site, located along Alte Poststraße and spanning 1,120 sqm (12,055 sq ft) with capacity for 380 racks, launched in 2022 and delivers 3.6MW of power.
Beyond Austria, Nexspace is also exploring a data center development at the Sternhöhe campus in Stuttgart, though full details have not yet been disclosed. The company's continued investments reflect a broader industry trend toward distributed infrastructure, as operators and enterprises alike seek to balance scalability, efficiency, and proximity to data sources in an increasingly digital economy.