Schwarz invests $6.5 bn in Rostock data centre

The Schwarz Group, an international retail and IT services provider, has announced plans to invest $6.5 billion in constructing a data centre near Rostock, Germany. The facility, located in Dummerstorf, is expected to have a capacity of 240 megawatts by 2033. Schwarz CEO Gerd Chrzanowski emphasized that digital sovereignty is achieved through action, reliable infrastructure, and practical applications.

In addition to the Rostock project, Schwarz is also building a similarly sized data centre in Brandenburg, near Berlin, with estimated investment costs of €11 billion. The Schwarz Group, which employs over 600,000 people worldwide, is primarily known for its supermarket chains Lidl and Kaufland. However, it has been expanding its IT services division, Schwarz Digits, which reported revenue of €2.2 billion in the fiscal year ending in February, a 16% increase year-over-year.

Digital sovereignty refers to companies and nations determining where their data is stored and who can access it, independent of US or Chinese technology companies. Schwarz aims to become a European alternative to major providers like Amazon Web Services (AWS) and Microsoft Azure. As a "hyperscaler," Schwarz plans to offer storage, computing power, artificial intelligence, and other tools at scale through its data centres.

In the Dummerstorf facility, the initial capacity will support the Schwarz Group's own needs, including data from delivery and ordering processes, payment transactions, and customer loyalty programs. The company also stated that the data centre would contribute to the further development and scaling of sovereign IT solutions. By 2045, the centre could expand to a capacity of 1 gigawatt.