German firm dataR has officially begun construction of its Hamburg data center.

The company last week held a groundbreaking ceremony for the construction of its new data center in Rellingen, 10km north west of Hamburg.

Set on a 9,300 sqm (100,105 sq ft) site on the corner of Kellerstrasse and Hermann-Löns-Weg, the facility will offer 5MW across 4,900 sqm (52,745 sq ft) of technical space – around 600 racks. It will utilize water-and-air cooling with a target PUE between 1.08 and 1.225.

A building permit was issued in spring 2023, site preparation work had already started, and completion is scheduled for the end of 2025.

DataR is the data center subsidiary of Hamburg-based cloud service provider x-ion, and will operate the facility once it is complete. It is being developed Rz.hamburg GmbH, another x-ion business. German private bank Hauck Aufhäuser Lamp Privatbank has acquired the site earlier this year and will be renting it to dataR.

X-ion, founded in 2009, offers IaaS, PaaS, and SaaS cloud services from nine data centers globally across Hamburg, Frankfurt, Mumbai, Chicago, and New Jersey.

The company announced dataR alongside plans for a new data center in October 2022. Abendblatt suggests the company is investing €60 million ($64.5m) in the project.