Tech giant Google has announced a sweeping investment plan in Germany, including a new data centre and expansions in several cities, as Europe accelerates its efforts to narrow the artificial intelligence (AI) gap with the United States and China. The move follows a series of major announcements aimed at strengthening Europe’s digital infrastructure, including Nvidia and Deutsche Telekom’s plan last week for a high-tech AI hub in Munich.
Billions in New Investments to Strengthen Germany’s Digital Backbone
The investments, to be completed by 2029, will include a new data centre in the western state of Hesse and the expansion of an existing facility, significantly boosting computing capacity for AI applications. Google will also enlarge its offices in Berlin, Frankfurt, and Munich, supporting projects that align with Germany’s climate-neutral goals through renewable energy use and waste-heat recovery systems.
“These investments show that we are driving growth in Germany,” Chancellor Friedrich Merz said during the announcement. He added that Germany “remains one of the most attractive destinations for investment globally,” at a time when the country’s economy faces headwinds.
According to Google, the plans will support around 9,000 jobs annually, underpinning the company’s commitment to deepening its long-term presence in Europe’s largest economy.
Google’s Focus on Sustainable and Sovereign AI Infrastructure
Google’s country manager for Germany, Philipp Justus, described the initiative as part of the company’s broader strategy to “extend our investments in the country and open new avenues for AI-driven transformation.”
The tech firm underscored its commitment to environmental responsibility, citing projects that include the purchase of wind and solar energy and a heat recovery initiative that will channel excess heat from its data centres to local communities.
Amid ongoing European concerns about dependence on U.S. technology companies, Google also emphasised its “sovereign cloud computing” model — which, it said, allows European clients to use AI capabilities “in compliance with local data rules and European values.”
Europe’s AI Ambitions and the Sovereignty Debate
The announcement aligns with the Merz government’s push to attract foreign tech investment and revitalise Germany’s digital sector, as its traditional manufacturing industries grapple with structural challenges.
Recent projects, such as Nvidia’s €1-billion AI computing hub in Munich, signal Germany’s determination to position itself as Europe’s AI engine. According to industry association Bitkom, Germany’s data-centre capacity is projected to grow by 70% by 2030, although Europe as a whole continues to trail — with 16 gigawatts of capacity compared with 48 GW in the U.S. and 38 GW in China.
Still, the growing presence of U.S. tech firms has reignited the debate over digital sovereignty. The issue has gained urgency as transatlantic relations have become strained following Donald Trump’s return to the U.S. presidency, prompting European leaders to advocate for storing sensitive data under domestic legal frameworks.
Kristina Sinemus, Hesse’s Minister for Digital Strategy, downplayed fears about data vulnerability, insisting that working with American companies does not automatically compromise European data privacy. “We don’t simply hand over our data to the U.S.,” she said. “We must stop thinking in black and white — the reality is far more nuanced.”
The announcement marks one of the most significant digital investments in Germany in recent years, offering a much-needed boost to the economy.
