Europe and Middle East
Deutsche Telekom and Schwarz Group in advanced talks to build joint ‘AI gigafactory’ data centre
What happened: EU-backed project could boost Europe’s AI capacity German newspaper Handelsblatt reports that Deutsche Telekom and the Schwarz Group are in advanced negotiations to jointly build a mega data centre, often referred to as an “AI gigafactory.” The aim is to apply for funding from the Eur…
Headline
What happened: EU-backed project could boost Europe’s AI capacity German newspaper Handelsblatt reports that Deutsche Telekom and the Schwarz Group are in advanced negotiations to jointly build a mega data centre, often referred to as an “AI gigafactory.” The aim is to apply for…
Context
German newspaper Handelsblatt reports that Deutsche Telekom and the Schwarz Group are in advanced negotiations to jointly build a mega data centre, often referred to as an “AI gigafactory.” The aim is to apply for funding from the European Commission’s multi-billion-euro initiative to support large-scale AI data centre projects across Europe. A Canadian investment firm, Brookfield Corporation, is said to be considered for financing support.
Evidence
Pending intelligence enrichment.
Analysis
A spokesperson for Deutsche Telekom confirmed interest in assuming a leading role in establishing an “EU-AI-Gigafactory at the German site,” though they declined to comment explicitly on a partnership with Schwarz. Both Schwarz Group and Brookfield declined to comment when approached. The Schwarz Group has already announced plans to build a large data centre in Lübbenau (Spreewald region), with an estimated investment of around €11 billion. Also read: Deutsche Telekom advances 3D networking for 6G Also read: Deutsche Telekom lifts dividend on strong US gains This potential collaboration comes at a time when the European Union is aggressively promoting domestic AI infrastructure to reduce reliance on external providers and strengthen digital sovereignty. A robust network of AI-ready data centres could support European companies in deploying large language models and other advanced AI at scale — especially as demand for computing power surges.
Key Points
- They are preparing a joint application under the EU’s AI data-centre subsidy scheme.
- Discussions remain advanced but no formal agreement has yet been signed, according to people familiar with the matter.
Actions
Pending intelligence enrichment.
