Deutsche Telekom and the Schwarz Group are reportedly advancing plans to jointly build a large-scale “AI Gigafactory,” in Germany to compete for one of the European Union’s newly funded mega–data center projects.
Handelsblatt reported that both companies are in active discussions to submit a joint application for EU support as part of the bloc’s €20 billion (US$ 23.2 billion) initiative to accelerate AI infrastructure and reduce dependence on the U.S. and China.
The partnership was reportedly initiated by Deutsche Telekom CEO Timotheus Höttges and Schwarz Group CEO Gerd Chrzanowski. A Deutsche Telekom spokesperson confirmed to Handelsblatt the company’s strong interest in securing the EU AI Gigafactory for Germany, saying it aimed to take a “leading position” in the competition for the project. However, they declined to comment on a joint bid with Schwarz. The Schwarz Group and Brookfield declined to comment about the inquiries by the publication.
The Canadian investment firm Brookfield is reportedly being considered as a financial partner, though no formal agreement has been reached. Three individuals involved in the negotiations described the talks as “well advanced”.
Hints of the collaboration surfaced publicly in mid-November at the European digital sovereignty summit in Berlin. Rolf Schumann, co-head of Schwarz Digits, said that Schwarz had “teamed up with Telekom to bring the Gigafactory to Germany,” while Höttges stood nearby on stage as reported by heise online.
The envisioned facility would reportedly be designed to meet the AI computing demands. Both companies are said to be coordinating efforts to advocate for an EU-backed buildout of hyperscale data centers. If realized, the project would represent one of Europe’s most significant investments in AI infrastructure and cause an intense contest over which region ultimately hosts the facility.