Google on Tuesday unveiled its largest-ever investment in Germany, pledging €5.5 billion ($6.4 billion) for a new data centre and other projects as Europe strives to close the gap in the global race for artificial intelligence.
The announcement follows last week’s partnership between AI chip giant Nvidia and Deutsche Telekom to establish a high-tech hub in Germany aimed at accelerating the adoption of artificial intelligence across industries.
The new funding represents a major boost for Germany’s struggling economy and for Europe’s broader effort to compete with AI powerhouses such as the United States and China.
“We are driving growth in Germany,” Chancellor Friedrich Merz said at the launch, adding that “our country is and will remain one of the most attractive places for investment in the world.”
Google’s investment, to be completed by 2029, includes building a new data centre and expanding an existing one in the western state of Hesse to provide computing power for AI development. The company will also expand its offices in Berlin, Frankfurt, and Munich while rolling out several sustainability initiatives.
Among these are the purchase of renewable wind and solar energy and a “heat recovery” project that will channel excess heat from data centres to local communities. Google said the plans would support around 9,000 jobs annually in Germany.
“Google is deepening its roots in Germany, extending our investments and creating new pathways for AI-driven transformation,” said Philipp Justus, Google’s country manager for Germany.
Merz’s coalition government, which took office earlier this year, has made attracting foreign investment a priority as it seeks to revitalise the digital sector amid challenges facing traditional industries.
The Nvidia-led initiative announced earlier involves a €1 billion computing hub in Munich, designed to give European firms—from large manufacturers to start-ups—broader access to AI technology.
Germany is rapidly expanding its data infrastructure, with the country’s data centre capacity projected to grow by 70 percent by 2030, according to the digital industry association Bitkom. Yet Europe remains behind global competitors: as of last year, its total computing capacity stood at 16 gigawatts, compared with 48 gigawatts in the U.S. and 38 in China.
While the investments are widely seen as a boost to Germany’s economy, they have also reignited debate over Europe’s reliance on U.S. technology giants, especially in sensitive sectors like AI.
Tensions between Europe and the U.S. have increased since President Donald Trump returned to office, sparking renewed calls for “digital sovereignty” — the principle that European data should be stored and governed under EU rules.
Addressing these concerns, Google stressed that its “sovereign cloud” services allow clients to use AI capabilities while complying with local regulations and European values.
Kristina Sinemus, Hesse’s Minister for Digital Strategy and Development, also downplayed fears about data security, saying, “We don’t automatically hand over all data to the U.S. with a U.S. investor. Agreements can ensure data stays within Europe. We need to stop thinking in black and white terms — it’s more complex than that.”
