Schwarz Group to invest 16.6 billion euros in AI and cloud infrastructure

The Schwarz Group, owner of Lidl and Kaufland, is launching a massive technological expansion through its division, Schwarz Digits. The group plans to invest approximately 16.6 billion euros into two major data center projects in Germany to bolster European capabilities in cloud services, cybersecurity, and artificial intelligence.

The largest project is located in Lübbenau, Brandenburg, on the site of a former power plant. Schwarz Digits will invest 11 billion euros into this facility, which is expected to be completed by the end of 2027. The center is designed to support 200 MW of power and could eventually house up to 100,000 GPUs for training and operating large AI models.

A second complex is planned for Dummerstorfe near Rostock, with an investment of at least 5.6 billion euros scheduled through 2033. This site aims for a capacity of approximately 240 MW.

Through its STACKIT cloud service, the group intends to provide a European alternative to American and Chinese technology giants. The initiative focuses on technological independence, GDPR compliance, and keeping sensitive data within Europe to serve regulated organizations such as hospitals and government agencies.