Deutsche Telekom, SAP, Ionos, and retailer Schwarz have joined forces to propose the development of a large-scale artificial intelligence (AI) data processing centre in Germany. The consortium is seeking financial support from the European Union as part of the bloc’s $20 billion initiative to build AI infrastructure. The planned data centre would be one of five “AI gigafactories” supported under the European Commission’s strategy to accelerate homegrown AI capabilities.
Germany eyes leadership in AI infrastructure
The proposal aligns with Germany’s ambition to secure one of the AI centres, as outlined in the coalition agreement of Chancellor Friedrich Merz’s government. Handelsblatt reports that the consortium is preparing to submit an expression of interest by the EU’s June 20 deadline. Christine Knackfuss-Nicolic, Chief Technology Officer at Deutsche Telekom T-Systems division, emphasized the urgency of building an independent European infrastructure. “Rarely before have the signs and the common will in Europe been as strong as they are today,” she told Reuters.
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Challenges remain around scale, chips, and power
While the European Commission’s plans mark a significant step toward digital sovereignty, execution will require overcoming logistical and technical hurdles—including sourcing high-performance computing chips, securing energy capacity, and finding suitable sites. Ionos confirmed its involvement in discussions and expressed interest in participating, noting that several critical details remain unresolved. SAP and Schwarz have not yet provided comments.
If approved, the German-led facility would contribute significantly to the EU’s goal of developing its own AI models and reducing reliance on foreign technology giants.
