Germany’s retail giant, the Schwarz Group—famous for Lidl and Kaufland—is entering the AI arena. The company is proposing a multi-billion euro plan to the German government to spearhead one of Europe’s future AI “gigafactories,” as part of a €20 billion EU initiative to establish five large data centers, each equipped with 100,000 advanced AI chips.
This initiative goes beyond technology—it concerns sovereignty. Schwarz’s technology division, Schwarz Digits, introduced its cloud service StackIt in 2017 to reduce dependence on U.S. cloud services and keep data localized. Now, with plans to invest €11 billion in the coming years, they aim to be a key player in Europe’s AI framework.
Germany’s Digital Minister, Karsten Wildberger, is uniting major players like Deutsche Telekom, SAP, and Schwarz Group to promote digital autonomy. The objective? To strengthen Europe’s capabilities in AI, cloud computing, semiconductors, and cybersecurity.
Although Schwarz previously contemplated collaborating with other German tech leaders, the competition for EU funding has intensified. For example, Deutsche Telekom is already partnering with Nvidia to roll out an industrial AI cloud by 2026. With the EU likely to narrow down gigafactory proposals by late 2025, consolidation among German competitors seems unavoidable.
Schwarz is in the process of constructing a data center in Luebbenau, close to Berlin, with hopes of being selected as one of the EU’s premier AI centers. Their current StackIt infrastructure, located in Germany and Austria, adheres to stringent European data protection regulations—providing them with a significant advantage in the sovereignty battle.
This initiative is not merely about national pride—it’s about keeping up with global tech leaders. As the EU plans to triple its data center capacity over the next 5–7 years, the Schwarz Group’s shift from retail to advanced technology could assist Europe in bridging the gap with the U.S. and China—and ensure that AI advancements remain aligned with European principles.
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