Is Hetzner Berlin/Falkenstein the right hosting for a German Magento store?

Often yes, but it depends. Hetzner is the German hosting giant, HQ in Gunzenhausen, Bavaria, with major DCs in Falkenstein (Saxony, ~3 hours south of Berlin) and Nuremberg. Hetzner Berlin local-edge sits ~10ms from Mitte and Kreuzberg, same as AWS eu-central-1 Frankfurt, at ~30% the cost. For a Berlin DTC store under €5M GMV, a Hetzner dedicated AX-line server (AX102 / AX162) at €100, €200/month outperforms most €800, €1,500/month AWS EC2 setups on raw IO + RAM. Trade-offs: Hetzner is unmanaged (no Aurora-style auto-scaling), no native PaaS, no managed Redis/OpenSearch, you DIY or use Cloud Panel. AWS eu-central-1 Frankfurt wins for: predictable auto-scaling, managed Aurora MySQL, RDS Postgres for analytics, S3 + CloudFront, IAM-driven multi-team access. Adobe Commerce Cloud Frankfurt wins for: managed Magento, Fastly CDN, Adobe-supported scaling. We pick Hetzner Berlin/Falkenstein for cost-sensitive merchants, AWS Frankfurt or Adobe Cloud Frankfurt for enterprise.