TL;DR
Schwarz Group, the owner of Lidl and Kaufland, is building an €11 billion AI data center at a former coal power site in Brandenburg without direct government subsidies. The project could house up to 100,000 GPUs, but its commercial demand, final hardware configuration and effect on Europe’s dependence on foreign technology remain uncertain.
Schwarz Group, the owner of Lidl and Kaufland, is building an €11 billion AI data center at a former coal-fired power plant near Lübbenau, Germany, in a privately financed effort that could add up to 100,000 GPUs to Europe’s computing capacity. The 200-megawatt project matters because it places one of Europe’s largest AI infrastructure bets in the hands of a retailer-backed technology division rather than a government program or established global cloud provider.
The development is being led by Schwarz Digits, the group’s information technology division. The reported budget consists of about €2.5 billion for construction and €8.5 billion for technology. A first module is planned to enter service by the end of 2027, according to project details cited in the source material.
The facility is designed for a capacity of 200 megawatts and could eventually accommodate as many as 100,000 graphics processors. That figure describes an upper limit, not a confirmed initial deployment. Reports cited by Thorsten Meyer AI say the center will use renewable electricity and receive no direct government subsidy.
The investment is more than five times Schwarz Digits’ reported annual sales of roughly €1.9 billion. Its parent company has a much larger financial base: Schwarz Group records about €175 billion in yearly revenue, employs approximately 575,000 people and operates in 32 countries. That scale gives the technology unit access to capital and internal computing demand that most European cloud companies lack.
The supermarket that bought Europe’s AI: why industrial capital beats government money
The €500M cheque got the headlines. The €11 billion one is the story. On a dead coal plant in Brandenburg, the owner of Lidl is building a 200 MW, 100,000-GPU AI data centre — with no government subsidy at all.
Europe looked for its AI advantage in regulation, talent and Brussels programmes. Magdeburg is what that produces. The real advantage was sitting in the Mittelstand: enormous, foundation-owned industrials with recession-proof cash, decades of proprietary data, inherited KRITIS compliance — and nobody to answer to. Patient capital is the one thing American AI structurally cannot buy. But be precise: Europe’s sovereignty didn’t get nationalised — it got privatised. The answer to American corporate power over European AI is turning out to be German corporate power, with a toll booth attached. That may be the better trade. Just don’t call it independence — call it a change of landlord, and read the lease.
Retail Capital Reshapes AI Capacity
The project could give European companies another regional option for cloud hosting and AI computing at a time when much of the market is controlled by Amazon, Microsoft and Google. STACKIT, Schwarz Digits’ cloud platform, already operates about 20,000 servers and holds certifications used for regulated and sensitive workloads.
Its financing also contrasts with Intel’s planned semiconductor factory in Magdeburg. Germany had negotiated €9.9 billion in state support for that project before Intel cancelled it in July 2025, according to the source material. Lübbenau is already under construction without comparable aid, suggesting that large industrial balance sheets may move some infrastructure projects faster than subsidy-dependent investment programs.
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From Groceries to Sovereign Cloud
Schwarz Group created Schwarz Digits in 2023 to combine STACKIT, cybersecurity company XM Cyber and other digital operations. Its retail businesses process more than 13 billion transactions a year, giving the division a large internal customer and extensive operational data.
The group’s ownership structure supports long investment periods. Schwarz is privately controlled through entities connected to founder Dieter Schwarz and a foundation structure, with no publicly traded shares. Similar arrangements exist at Bosch, Zeiss and Bertelsmann. Supporters of this model say it permits decade-long spending plans without quarterly market pressure, although that interpretation remains an assessment rather than a proven cause of the Lübbenau decision.
“Europe’s sovereignty didn’t get nationalised — it got privatised.”
— Thorsten Meyer AI
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Demand and Hardware Plans Unsettled
It is not yet clear how many GPUs will be installed in the first module, which chip suppliers will be selected or how quickly the site could reach its 100,000-GPU ceiling. The source material also does not provide confirmed customer contracts, pricing or expected utilization for the external AI market.
Commercial independence is another open issue. STACKIT reportedly has a five-year exclusivity position within the group, while Schwarz uses Google Workspace for its workforce. Private ownership also brings less routine disclosure than a listed company, leaving questions about financing, performance targets and governance. Claims that the project establishes European AI sovereignty go beyond what construction alone confirms.
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First Lübbenau Module Due
Attention will now turn to construction milestones through 2027, the choice of processors and the disclosure of outside customers. The first module is scheduled for late 2027. Its launch, utilization and ability to win business beyond Schwarz Group will show whether the investment becomes shared European infrastructure or remains largely an internal computing platform.
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Key Questions
Who is building the Lübbenau AI data center?
Schwarz Digits, the technology division of Lidl and Kaufland owner Schwarz Group, is leading the project.
How much will the project cost?
The reported commitment is €11 billion, including about €2.5 billion for construction and €8.5 billion for technology.
Will the facility contain 100,000 GPUs when it opens?
No initial deployment figure has been confirmed. Up to 100,000 GPUs is the site’s reported maximum capacity, while the opening hardware configuration remains unknown.
Is the German government subsidizing the data center?
The project is receiving no direct government subsidy, according to reports cited in the source material. Full details of any local infrastructure arrangements have not been disclosed.
When will the data center begin operating?
The first section is planned to begin service by the end of 2027. Later expansion will depend on construction progress and customer demand.
Source: Thorsten Meyer AI
