Google to invest €5.5 billion in Germany to expand DC capacity

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Picture of Conor McNevin
By Conor McNevin
As w.media’s Europe and Americas correspondent, Conor covers the data center industry in the western hemisphere. Conor’s decade long experience spans digital infrastructure, software, cybersecurity, telecom, biotech, and construction.

Google has unveiled plans to invest € 5.5 billion (US$ 6.4 billion) in Germany over the next three years to expand its infrastructure and data center capacity. The investment, scheduled between 2026 and 2029, marks Google’s largest investment in Germany to date.

According to some media reports, the plan includes the construction of a new data center in Dietzenbach, near Frankfurt, and the expansion of the company’s existing site in Hanau, in the central state of Hesse. Google also intends to expand its facilities in Munich, Frankfurt, and Berlin, supporting renewable energy initiatives and innovative infrastructure projects, according to a company statement.

Finance Minister Lars Klingbeil described the investment as a “truly important signal for Germany as a business location.” He emphasized that the government will not provide state subsidies for Google’s expansion, although it recently launched a large off-budget infrastructure fund to attract investment and modernize the country’s economy as reported by The Economic Times.

Germany has been seeking to boost foreign investment amid high costs and bureaucratic hurdles. The Google announcement follows a US$ 1.2 billion AI partnership between Deutsche Telekom and Nvidia, announced in early November which signals a growing international interest in the German tech sector.

Google already has an extensive presence in Germany, operating data centers primarily in Hesse, including Erlensee, Dietzenbach, Babenhausen, and Hanau. The company has also purchased land for new data center construction, reflecting a long-term commitment to expanding its European infrastructure. Previous investments have focused on both cloud computing capabilities and sustainability initiatives, positioning Germany as a central hub for Google’s operations in Northern Europe.

 

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