Schwarz Group, the German owner of Lidl and Kaufland, is constructing a reported €11 billion AI data center near Lübbenau, Brandenburg, without government subsidies, according to a July 16 analysis from Thorsten Meyer AI. Designed for as many as 100,000 graphics processors, the project tests whether Europe’s private industrial capital can build computing infrastructure faster than state-backed programs.

The report describes a 200-megawatt facility on the site of a former coal-fired power plant. Its reported budget includes €2.5 billion for construction and €8.5 billion for technology, with the first module expected to begin operating by the end of 2027. The analysis calls it the largest investment in Schwarz Group’s history.

The scale is unusual for the group’s technology arm. Schwarz Digits, which includes the STACKIT cloud platform, generates about €1.9 billion in annual sales, according to the report. The Lübbenau commitment would exceed five times that figure, although the wider Schwarz Group has roughly €175 billion in annual revenue and operations across 32 countries.

Thorsten Meyer AI says the development is receiving no government subsidy. That claim is central to its comparison with Intel’s planned semiconductor factory in Magdeburg, which had negotiated €9.9 billion in German aid. The report says Intel’s project was cancelled in July 2025, while the Schwarz site is under construction; those status claims are attributed to the report because supporting government or company documents were not included in the supplied material.

Private Capital Challenges State Programs

The project could add a large pool of Europe-based AI computing capacity at a time when European companies depend heavily on infrastructure operated by US technology groups. A domestic site offering cloud and accelerator access could support regulated businesses, public institutions and developers seeking European data hosting.

Its wider relevance rests on the financing model. Schwarz combines retail-generated cash, a privately held ownership structure and an established technology division. The report argues that this allows management to pursue a decade-long investment without the quarterly pressure faced by listed companies. That model may be difficult to reproduce because few European industrial groups have the same mix of scale, data and cloud experience.

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Retail Infrastructure Built the Foundation

Schwarz created Schwarz Digits as a separate division in September 2023, bringing together STACKIT and other digital operations. The report says STACKIT had already developed about 20,000 servers and 22.5 petabytes of storage, giving the group a base from which to expand into AI infrastructure.

The retailer also processes more than 13 billion transactions annually and employs about 575,000 people. Its systems operate under security and compliance requirements associated with large-scale retail infrastructure, including reported BSI C5, ISO 27001, SOC 2 and DORA credentials. Those capabilities predate the current AI investment and may help Schwarz sell services to customers with strict data rules.

“It is taking no government subsidy at all.”

— Thorsten Meyer AI, July 16, 2026

Financing and Independence Remain Unproven

The supplied material does not identify the project’s GPU supplier, financing schedule, construction milestones or committed external customers. It is also unclear how quickly Schwarz can secure as many as 100,000 processors, connect 200 megawatts of capacity to the grid and obtain enough low-carbon electricity for continuous operation.

The sovereignty claim also has limits. A European data center may provide local hosting and governance, but it could still rely on US-designed chips and software. The report also points to a five-year STACKIT exclusivity arrangement as a possible customer chokepoint and notes that Schwarz uses Google Workspace internally. Private ownership may support long investment horizons, but it offers less public disclosure than a listed company.

Late-2027 Opening Becomes the Test

Attention will turn to construction progress, grid access and procurement disclosures before the first module’s targeted launch in late 2027. Customer announcements will show whether STACKIT can sell capacity beyond Schwarz Group, while official financing records could clarify the zero-subsidy claim. The project’s impact will depend on delivered computing capacity, not its headline budget.

Key Questions

What is Schwarz Group building near Lübbenau?

The company is reported to be building a 200-megawatt AI data center on a former coal-power site. It is designed to accommodate as many as 100,000 GPUs.

How much is the project expected to cost?

The reported commitment is €11 billion, divided between about €2.5 billion in construction and €8.5 billion in technology.

Is the German government funding the facility?

Thorsten Meyer AI says the project will receive no state subsidy. The supplied material does not include direct confirmation from Schwarz or government authorities.

Does this make Europe independent in AI infrastructure?

No. The facility could increase European-controlled computing capacity, but dependence on foreign chip and software suppliers may continue. It would also concentrate infrastructure control in one private group.

When could the data center begin operating?

The first module is targeted for the end of 2027. The report does not provide a full timetable for reaching the planned 200-megawatt capacity.

Source: Thorsten Meyer AI