The Schwarz Group, a German-based retailer which owns the supermarket chain Lidl, plans to lead the development of a major data center for AI.

The retailer is expected to present its multibillion-euro investment plan to the government on July 11, 2025, according to sources familiar with the matter.

This initiative supports Germany’s goal to secure part of the €20 billion (US$23.4 billion) in European Union subsidies for AI “gigafactories.”

Germany’s Digital Minister, Karsten Wildberger, will meet with companies such as the Schwarz Group, Deutsche Telekom, and SAP SE to discuss technological independence and AI infrastructure.

The Digital Ministry confirmed the meeting, highlighting the need to reduce dependency on foreign technology and enhance expertise in AI, cloud computing, semiconductors, and cybersecurity.

A spokesperson for the Schwarz Group acknowledged interest in the data center proposal but declined to provide further details.

The Schwarz Group, which entered the tech sector in 2017 with its cloud-computing service StackIt, has cited data privacy concerns as a key factor in its cloud strategy.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Europe’s unprecedented AI infrastructure mobilization

The Schwarz Group’s bid is part of a significant wave of interest in the EU’s AI Gigafactories initiative, which has attracted 76 expressions of interest across 16 member states, far exceeding initial expectations 1.

These proposals collectively represent planned investments exceeding €230 billion and aim to acquire over three million GPUs, signaling one of the largest coordinated technology infrastructure pushes in recent European history 2.

This response demonstrates the strategic importance European businesses place on AI infrastructure, with companies willing to commit substantial resources despite economic uncertainties.

The gigafactories will serve as collaborative hubs designed to provide access to advanced computing resources, particularly benefiting smaller companies that couldn’t otherwise afford such infrastructure 3.

Germany’s involvement aligns with its broader €1.7 billion AI investment strategy during the current legislative period, highlighting how national priorities are aligning with EU-wide initiatives 4.

2️⃣ From groceries to gigafactories: retail’s tech infrastructure pivot