A powerful German consortium, including SAP, Deutsche Telekom, web hosting company Ionos and the privately held retailer Schwarz. The German Consortium is actively competing for European Union support to build a major Ai data processing center, according to a report by Handelsblatt. The group is in modern talks to develop one of the EU’s five planned AI data centers, known as AI gigafactories, which are part of a $20 billion EU initiative aimed at boosting Europe’s AI capabilities to rival those of the U.S. and China.
This ambitious project is designed to help the EU develop its own AI models and infrastructure, addressing challenges such as securing semiconductor chips, finding suitable locations and ensuring sufficient electricity supply. Earlier this year, under the coalition agreement between German Chancellor Friedrich Merz’s conservatives and the Social Democrats, the partners committed to building at least one of these centers in Germany.
The deadline for submitting initial expressions of interest to the EU is June 20, signaling a tight timeline for this high-stakes competition.
Beyond this consortium’s efforts, Germany is also advancing broader digital infrastructure projects to support AI and data sovereignty. For example, Schwarz Digits, the digital arm of Schwarz Group, together with Deutsche Bahn, recently launched DataHub Europe, a secure, sovereign data platform designed to provide high-quality, GDPR-compliant data for AI training and industry use. This initiative focuses on promoting a European AI ecosystem that respects data protection and enhances technological sovereignty.
Moreover, SAP and Deutsche Telekom have deepened their partnership around cloud transformation, with Deutsche Telekom adopting SAP’s RISE with SAP solution to accelerate its cloud migration and innovation. This collaboration illustrates the growing integration of cloud and AI technologies in Germany’s leading firms.
The German government is also investing heavily in digital infrastructure, with projects like SAP’s approved initiative to create a unified data infrastructure across Europe, supported by €750 million in funding. This infrastructure aims to enable real-time data exchange across borders and sectors such as mobility, energy, and healthcare, further strengthening Europe’s digital sovereignty and competitiveness.
The German consortium’s bid for the EU AI gigafactory funding is part of a larger national and European push to build sovereign, advanced Ai data center. Success in these endeavors could position Germany and the EU as significant players in the global AI landscape, fostering innovation while ensuring data security and compliance with European values.
Other articles you may find interesting
