The Schwarz Group, known for Lidl and Kaufland, is investing €5.6 billion in a data center in Dummerstorf near Rostock. The facility is expected to reach a capacity of 240 megawatts by 2033 and will become central to the company's European cloud ambitions.
The essentials
- €5.6 billion investment for data center in Mecklenburg-Western Pomerania
- Capacity: 240 megawatts by 2033; wind power is the decisive location factor
- Schwarz Digits generated €2.2 billion in revenue in the fiscal year ending February (+16% year-over-year)
- Parallel project in Brandenburg costs €11 billion
Digital Sovereignty Over US Dependence
With this infrastructure push, Schwarz is positioning itself as a European alternative to Amazon Web Services and Microsoft Azure. The company aims to become a hyperscaler – a global cloud provider like the US giants, but with European control over data locations and access.
"Digital sovereignty doesn't emerge from appeals or speeches. It emerges through action, through reliable infrastructure, and through practical applications,"
said Gerd Chrzanowski, CEO of the Schwarz Group, announcing the project.
Wind Power as a Location Advantage
The Dummerstorf site near Rostock is no accident: the region offers access to abundant wind energy – a crucial factor for energy-intensive data centers. While other countries and companies struggle with power shortages, Schwarz leverages a natural advantage of Mecklenburg-Western Pomerania. This also benefits the energy transition: large data centers can be consumers of wind power and support grid stability.
| Project | Location | Investment | Capacity | Completion |
|---|---|---|---|---|
| Rostock | Dummerstorf, M-WP | €5.6 bn | 240 MW | by 2033 |
| Brandenburg | Brandenburg | €11 bn | – | – |
Schwarz Digits Growing Rapidly
The IT division Schwarz Digits is the backbone of this strategy. In the fiscal year ending February, it achieved revenue of €2.2 billion – growth of 16 percent year-over-year. The driver is rising demand for cloud solutions. Schwarz Digits offers cloud services and cybersecurity and is one of five divisions of the overall group, which recently reported €185.6 billion in total revenue.
The Lidl and Kaufland retail divisions remain the revenue powerhouse, but digital infrastructure is becoming a strategic growth engine. With data centers in Rostock and Brandenburg, Schwarz is creating the physical foundation to serve customers outside its own group with cloud and AI services.
What This Means for German Companies
This investment signals that German large corporations are taking dependence on US cloud providers seriously – and are willing to spend billions to break free. For mid-market and other companies, this could mean: genuine European alternatives to AWS and Azure are emerging, with legal certainty and data control under German and EU law. However, it remains unclear how quickly Schwarz Digits will achieve technical and commercial maturity to compete with established hyperscalers. The 2033 completion date also shows that infrastructure sovereignty is a long-term project.
Sources
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