Schwarz Group launches billion-euro project for new data center capacity in Lübbenau

The planned investment of eleven billion euros in a new data center in Lübbenau shows how important digital infrastructure has become for large retail groups. The Schwarz Group wants to strengthen its technological development and at the same time set an example for long-term digital sovereignty in Germany. The location in the Spreewald offers a combination of existing energy and network infrastructure, sufficient space and a favorable geographical location in the middle of Europe.

The first construction phase is scheduled for completion by the end of 2027. The plant has a modular design and is expected to achieve a connected load of around 200 megawatts in the first expansion stage. This capacity is crucial if an infrastructure is to be set up that can accommodate up to 100,000 special AI chips. Today, such systems are mainly used for training and inferencing large AI models, which require enormous computing power. By way of comparison, Deutsche Telekom’s data center currently under construction in Munich, which is based on Nvidia technology, is designed for around 10,000 GPUs.

In regular operation, the Schwarz Group wants to run the new center entirely on electricity from renewable sources. Some of the waste heat generated will be fed into the local district heating network, which will increase the project’s energy efficiency and support the region at the same time. This is not only a major technological project, but also an example of how modern data centers can be integrated into regional energy concepts.

Digital Minister Karsten Wildberger also emphasizes that Germany needs high-performance data centers. He points out the importance of such locations for the competitiveness of European companies and for the ability to develop and operate their own AI systems. The Schwarz Group is strategically aligning itself with models such as AWS, as its own infrastructure will not only work for Lidl and Kaufland, but will also be available to external customers. This could create a new provider in the European cloud market in the next few years that operates independently of US hyperscalers.

The main advantages of the Lübbenau site are the existing energy connections, which were originally built for a lignite-fired power plant, and the strong fiber optic connection. This allows large amounts of data to be transported quickly, and the proximity to Berlin also plays a role in the choice of location. Such conditions are rare, which is why Lübbenau is considered the ideal location for a project of this size.

According to the Alliance for Strengthening Digital Infrastructures, Germany remains the leader in Europe, even if it lags behind the USA and China internationally. The stable network infrastructure, the central location and the important internet hub of Frankfurt am Main nevertheless ensure that the location remains attractive. Approval procedures and high energy prices, which often slow down or increase the cost of such projects, continue to pose challenges.

Conclusion

I see this billion-euro project as a significant impetus for technological development in Germany because several factors are coming together here that could have a long-term impact. The Schwarz Group is not only building up additional computing power, but is also expanding its role as an independent IT provider, which can contribute to greater competition in the European cloud environment. At the same time, a location is being created in Lübbenau that has the potential to become a central hub for AI infrastructure thanks to its energy connection, fiber optic supply and geographical location. I also see this as an opportunity for the region, as additional jobs, collaborations and investments can be created. The decisive factor will be how efficiently the operation with renewable energies is implemented and how much external companies use this offer in the end.

Source: it-business.de