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Deutsche Telekom, Schwarz, SAP, and Ionos had discussed a joint application for an EU-backed AI data center, according to previous reports
In sum – what to know:
Germany eyes EU-backed AI facility – Deutsche Telekom and Schwarz Group are exploring an application to the EU’s €20bn gigafactory fund to build a major AI data center in Germany.
Large-scale AI chip capacity planned – The proposal aligns with EU goals to deploy sites with roughly 100,000 advanced AI chips for training large models across four locations.
Telekom and Schwarz expand AI roles – The potential project builds on Germany’s growing AI infrastructure push, including Telekom’s Nvidia partnership and Schwarz Group’s StackIT cloud operations.
German carrier Deutsche Telekom and the Schwarz Group, parent company of Lidl, are reportedly exploring plans to build a large AI data center in Germany, according to local newspaper Handelsblatt.
The companies are said to be in discussions about applying for support from the EU’s €20 billion ($23.2 billion) AI gigafactories fund, which aims to finance four facilities across the bloc, each equipped with around 100,000 next-generation AI chips for large-scale model training.
The fund is part of the EU’s broader €200bn InvestAI initiative announced earlier this year. Canadian investment firm Brookfield is also understood to be involved in the initiative, according to the report. Deutsche Telekom told Handelsblatt it is “interested in establishing the EU AI Gigafactory in a leading position for Germany.”
Earlier reports indicated that Deutsche Telekom, Schwarz, SAP, and Ionos had discussed a joint application for an EU-backed AI data center. Telekom has been expanding its AI infrastructure footprint since 2023, including a recently announced Munich facility with Nvidia for an industrial AI cloud. Schwarz Group, Europe’s largest retailer, operates its digital and cloud units through Schwarz Digital and StackIT.
In August, Deutsche Telekom’s CEO Tim Höttges told a conference call with investors that the telco was planning to begin construction in 2026 on a large-scale AI data center as part of its push into AI infrastructure.
The facility, being developed with Nvidia and investment firm Brookfield, is intended to support what the partners have described as the world’s first industrial AI cloud for European manufacturers, the telco said.
The executive also noted that the North Rhine-Westphalia region is under consideration for the AI facility, with talks held with Germany utility company RWE over locations that already have approvals for electricity and water. Höttges said plans could still change but underlined that building an AI data center remains a firm objective of the company.
In June, Deutsche Telekom first confirmed it was working with Nvidia to build Europe’s “first industrial AI cloud,” specifically to serve manufacturing companies in Germany and mainland Europe.
