Lidl owner eyes “AI gigafactory” in Europe
Europe’s largest retailer, which owns supermarket chains Lidl and Kaufland, wants to build one of several artificial intelligence (AI) “gigafactories” planned by the EU.
Image by Marijan Murat/Getty Images
Europe’s largest retailer, which owns supermarket chains Lidl and Kaufland, wants to build one of several artificial intelligence (AI) “gigafactories” planned by the EU.
The Germany-based Schwarz Group, controlled by billionaire founder Dieter Schwarz, is planning to pitch the German government to be the lead developer of one of these major data centers, according to a report by Bloomberg.
The company would invest “billions” of euros in the project, sources told the website, as Germany aims to tap into the EU’s €20 billion ($23 billion) fund established to support the development of new gigafactories central to the bloc’s AI ambitions.
Germany’s digital minister, Karsten Wildberger, is meeting with representatives of the Schwarz Group – as well as Deutsche Telekom AG and SAP SE – on Friday (July 11th) to discuss “digital sovereignty,” according to Bloomberg.
More German companies are reportedly interested in the project as the EU is seeking to reduce “technological dependencies” and “massively expand our own expertise” in key technologies like AI, cloud, semiconductors, and cybersecurity, Germany’s Digital Ministry said.
Europe is pouring billions into AI infrastructure to keep up with the US and China and avoid becoming too reliant on foreign powers for critical technologies.
Brussels announced an ambitious €200 billion AI investment initiative earlier this year, shortly after OpenAI launched Stargate, a project that pledged to spend $500 billion on AI in the US.
US President Donald Trump said the new venture, backed by the Japanese investment firm Softbank, would ensure the US stays ahead of China and other rivals in the global race to develop AI.
This heightened Europe’s fears of becoming a “digital colony,” something that French legislators warned could happen in a report last year if the EU falls further behind its peers in the US and China.
The EU’s spending plans are complemented by individual member states, including France, which said it would spend €109 billion on AI in the next several years.