Schwarz Group commits €5.6bn to build 240MW renewable-powered data center in Germany

Schwarz Group, the parent company of supermarket chain Lidl, has announced a €5.6 billion ($6.52 billion) investment to develop a 240MW data center in Mecklenburg-Western Pomerania, northeastern Germany, with the potential to expand to 1GW by 2045. The project, unveiled as part of a new partnership with the state government, is positioned as a cornerstone of a broader effort to establish a "digital hub" in the region and strengthen the country's digital sovereignty.

The facility will be located at an industrial park in Dummersdorf, a site that offers access to a 380kV grid connection. Schwarz Group highlighted the region's abundant renewable energy supply from both onshore and offshore wind, as well as its cooler ambient climate, which enables free cooling and reduces the facility's environmental footprint. The data center will be fully powered by renewable energy, aligning with the company's sustainability objectives.

The company has also signed a letter of intent with Rostock municipal utilities to implement a waste-heat reuse system, mirroring a similar initiative at Schwarz Group's existing project in Lübbenau, Brandenburg. The data center will be operated exclusively for Schwarz Group's own use, rather than as a colocation facility, underscoring the company's focus on internal digital infrastructure.

Gerd Chrzanowski, partner at Schwarz Group, emphasized the strategic importance of the investment: "Digital sovereignty is not achieved through appeals or speeches. It is achieved through action, reliable infrastructure, and practical applications. We are not waiting for others to take the lead. We are assuming corporate responsibility and investing sustainably in the future of Germany as a business location."

Manuela Schwesig, Minister-President of Mecklenburg-Western Pomerania, welcomed the announcement, stating: "The state government's goal is to become less dependent on foreign providers of data centers and cloud and AI applications. We therefore see 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."

The project will be managed by Schwarz Digits, the IT and digital division of Schwarz Group, while its cloud arm StackIT will support the company's cloud operations. StackIT's sovereign cloud platform was earlier this year selected as one of the providers for the European Commission's €180 million ($212 million) sovereign cloud services contract. StackIT operates four data centers across Europe, including facilities in Neckarsulm and Ellhofen in Germany, and Ostermiething in Austria, with a fifth currently under construction in Lübbenau, Germany.

The investment reflects a broader trend among European enterprises to build self-owned, renewable-powered digital infrastructure, reducing reliance on third-party providers and enhancing data security. By anchoring the project in a region with strong wind energy capacity, Schwarz Group is also contributing to the local economy and the transition toward sustainable data center operations. The development is expected to serve as a model for future large-scale digital infrastructure projects in Germany and beyond.