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Germany: Telekom and Schwarz Group plan gigantic AI Factory

Discount Retail Chain Lidl's mother company Schwarz Group and Deutsche Telekom (DT), are on the verge of launching a project that could change Europe's digital landscape forever. According to a report in the Handelsblatt, talks are already well advanced about a joint "AI Factory", another mega data center that could make Germany a real AI hotspot. A Canadian financial investor could also get on board and give the project additional billions of dollars. The goal is clear: to go full steam ahead with EU funding and take the lead in the development of AI infrastructure.


Europe's largest AI project?

DT and Schwarz Group have massively increased their efforts in the field of AI data centers in recent months. But now the rate is to be dramatically increased. What DT announced at the beginning of November sounds like the beginning of a new era: an uncompromising entry into the construction and operation of AI data centers on a gigantic scale. DT CEO Tim Höttges made it clear where the journey is heading at the presentation of a major project with chip giant NVIDIA. Germany should not only catch up, Germany should lead. The planned AI Factory would be a decisive lever to make Europe competitive again in the global AI race.


Billions in investments

The fact that the Schwarz Group is serious was already evident in mid-November: With a spectacular groundbreaking ceremony for a new data center and an incredible investment volume of eleven billion euros, the retail giant set new standards. See DRC's blog: Germany: Lidl owner invests 11 billion in its own data center


Now this know-how could be bundled with DT, a fusion of trading power and telecommunications giant, the likes of which Germany has never seen before. Officially, both companies are keeping a low profile. A DT spokesman explained that they did not want to comment on the specific case. But behind the scenes, everything seems to be running at full speed for a long time. Industry insiders are already talking about a "game changer" that could revolutionize the European AI ecosystem.


What does this mean for Germany?

If DT and Schwarz actually join forces, it would be a historic milestone. Germany could finally break away from the role of the AI laggard and take on a central role in the development, processing and provision of artificial intelligence. With an AI Factory of this size, not only would competitiveness increase, topics such as data sovereignty, digital independence and European innovation would also receive an enormous boost.



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