Lidl owner plans €5.6bn data centre as Germany pushes digital independence

Schwarz Group aims to build a 240MW facility in Mecklenburg-Vorpommern while working with the state on cloud services, digital building permits and secure systems for schools

The owner of Lidl and Kaufland is planning to invest up to €5.6bn in a huge new German data centre as part of a wider push to reduce reliance on foreign cloud and artificial intelligence providers.

Schwarz Group is considering a site at Dummerstorf in Mecklenburg-Vorpommern for the project, which would have a capacity of 240 megawatts by 2033, subject to the usual approvals.

The facility would support cloud and AI services operated through the group’s digital division, Schwarz Digits, with the company and regional government saying the aim is to develop technology governed by German law and strengthen digital infrastructure in Germany and Europe.

The partnership will also extend directly into public services, with digital building permits hosted on Schwarz Digits’ STACKIT cloud and secure OpenDesk workstations for teachers among the first projects due to be introduced in Mecklenburg-Vorpommern by the end of this year.

Plans for the data centre include using renewable electricity during normal operations and making waste heat available for a district heating network, while its northern German location is expected to allow greater use of outside air for cooling.

The project remains at an early stage and specifications including the precise mix of cloud and AI chips have not yet been decided. 

But in the longer term, the companies say the site could potentially support a grid connection of up to one gigawatt by 2045.

Gerd Chrzanowski, Schwarz Group general partner, said: “Digital sovereignty is not created by appeals or speeches. It is created by action, by reliable infrastructure, and by practical applications. 

“We are not waiting for others to lead. We are assuming entrepreneurial responsibility and investing sustainably in the future of Germany as an economic location.”

The proposed Dummerstorf site sits in an industrial park with access to northern Germany’s large supplies of renewable electricity, including onshore and offshore wind power.

It could also be connected to the 380-kilovolt extra-high-voltage grid, allowing large amounts of electricity to be supplied to the facility.

Schwarz Group has signed a letter of intent with the Rostock public utility over the use of waste heat from the data centre, with the aim of feeding it into local heating infrastructure.

The company is pursuing a similar approach at another data centre project in Lübbenau, Brandenburg, where agreements have already been signed for a joint district heating scheme.

Alongside the infrastructure investment, Schwarz Digits and the state government want the digital public services developed in Mecklenburg-Vorpommern to provide a model that could later be adopted elsewhere in Germany.

The partners say the building-permit and education projects are intended to be scalable and transferable, potentially providing a model for public administration across the country.

Manuela Schwesig, Mecklenburg-Vorpommern minister-president, added: “The goal of the state government is to become more independent from foreign providers of data centers and cloud and AI applications. 

“We therefore view the Schwarz Group’s investment decision as an opportunity for greater independence and increased data security. Our state will benefit from this investment in many ways.”

Schwarz Group operates around 14,500 stores worldwide and generated sales of €185.6bn in its 2025 financial year. Its businesses include Lidl and Kaufland as well as recycling company PreZero and its Schwarz Digits technology division.

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_{Main image: Gerd Chrzanowski, general partner of Schwarz Group, and Mecklenburg-Vorpommern minister-president Manuela Schwesig present the proposed site for a €5.6bn data centre in Dummerstorf. Credit: Schwarz Group / news aktuell}