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The Free State of Saxony in Germany is considering a new municipal data center, to be funded by a €140 million ($165 million) digitalization package from the federal government. Sources indicate Kamenz may be a potential site for the facility.

The data center aims to improve municipal IT independence, facilitate the digitalization of local government services, and ensure sovereign data storage. Initial infrastructure costs could range from €27-€35 million, potentially doubling with redundancy measures.

An additional €40 million will be required for local network and security upgrades. Despite a €2.9 billion budget deficit, Saxony is a key market for data center operators, receiving about 200 new construction requests monthly.