The Schwarz-Gruppe, known as the powerhouse behind supermarket giants Lidl and Kaufland, has embarked on a historic venture marking its largest single investment ever. The company recently broke ground on a massive AI-focused data center in Lübbenau, situated in the picturesque Spreewald region of Germany. This ambitious project, valued at a staggering €11 billion, is poised to become a cornerstone of digital transformation and sovereignty in Europe.
Europe’s Digital Sovereignty Ambitions
In today’s technology-driven world, data and computing power have become as vital as traditional infrastructure. Germany, along with much of Europe, is eager to reduce its dependence on dominant American cloud providers such as Amazon Web Services, Microsoft Azure, and Google Cloud, which together control a significant share of the global cloud market.
During the groundbreaking ceremony, Germany’s Federal Minister for Digital Affairs, Karsten Wildberger, highlighted the strategic importance of this initiative: “Germany needs computing power if we want to compete in the first league of Artificial Intelligence.” This sentiment underscores the broader European drive for digital sovereignty—ensuring that data processing and cloud services remain under European control.
The Schwarz-Gruppe’s new data center aligns perfectly with this vision. Currently, the group runs STACKIT, its own cloud platform, which now expands with this massive new facility expected to be operational from 2027. This facility will emphasize independence by hosting up to 100,000 graphics processing units (GPUs), essential for AI computations. To put this in perspective, this capacity is ten times larger than the upcoming data center built by Deutsche Telekom and Nvidia in Munich, which is planned to run about 10,000 GPUs.
Sustainability at the Core
Beyond sheer digital capability, the project places strong emphasis on sustainability and environmental responsibility. One of the standout features of the Lübbenau data center is its commitment to running entirely on green electricity during regular operations. This environmentally conscious approach addresses a common critique of data centers, which are often energy-intensive.
Furthermore, starting in 2028, the facility’s waste heat will be harnessed and fed into the local district heating network, potentially providing warmth to up to 75,000 households. This innovative use of server heat not only reduces environmental impact but also benefits the surrounding community—a true win-win.
Leveraging Regional Advantages
The choice of Lübbenau as the site for this data center is strategic on several levels. The location benefits from existing infrastructure, including the power grid and fiber-optic connectivity, thanks to the reuse of a decommissioned lignite power plant’s grounds. This not only reduces the need for new construction but also leverages regional resources smartly, contributing to the area’s economic development.
Local economic impact is equally significant. Such a monumental project is expected to create numerous jobs during both construction and ongoing operations, providing a much-needed boost to the regional economy of Spreewald and surrounding areas.
A Milestone Moment Amid Geopolitical Tensions
The timing of this investment reflects the urgent need for Europe to secure its digital future amid growing geopolitical uncertainties. Christian Müller, Co-CEO of Schwarz Digits, the digital division managing the data center, emphasized the importance of data security and sovereignty. “Everyone deserves to know who accesses their data and what happens with it,” he remarked. His colleague Rolf Schumann added, “If you are 100 percent dependent and someone switches something off, then it’s gone, along with your data.”
This viewpoint resonates deeply in a world suddenly rendered vulnerable by geopolitical conflicts and supply chain disruptions. Europe’s ambition to control its own digital infrastructure becomes a safeguard against external disruptions.
Spotlight at the Franco-German Digital Summit
The Lübbenau data center project is set to take center stage at the upcoming Franco-German Digital Summit in Berlin, where high-level discussions on strengthening European digital sovereignty will take place. Expected attendees include German Chancellor Friedrich Merz and French President Emmanuel Macron, alongside approximately 900 representatives from politics, business, and civil society.
This summit aims to produce concrete measures supporting Europe’s capacity in digital infrastructure and AI development, making the Schwarz-Gruppe’s investment a flagship example of European initiative.
Conclusion
The Schwarz-Gruppe’s €11 billion investment in a state-of-the-art AI data center in Lübbenau represents a landmark moment for Germany and Europe’s digital independence quest. Combining immense computational power, sustainability, and regional economic development, this project is positioned to become a critical asset for Europe’s technological sovereignty.
As data privacy concerns escalate and the geopolitical landscape evolves, investments like this will increasingly shape the future of digital ecosystems. For businesses, residents, and policymakers in Germany and across Europe, the Lübbenau AI data center is a beacon of innovation, resilience, and hope for a self-reliant digital future.
Photo by Igor Omilaev and NASA on Unsplash