Published by Global Banking & Finance Review®
Posted on November 30, 2025
1 min readLast updated: January 20, 2026
Deutsche Telekom and Schwarz Group are planning an AI data centre in Germany, seeking EU funding to enhance AI capabilities and compete globally.
BERLIN, Nov 30 (Reuters) - Deutsche Telekom and the Schwarz Group are planning to jointly build a gigafactory for artificial intelligence, German newspaper Handelsblatt reported on Sunday.
An "AI gigafactory" is a facility designed specifically to support the massive computing needs of AI.
The Germany-based telecoms giant and unlisted retailer Schwarz are in talks to apply for the large data centres funded by the European Union, the newspaper said, citing six people familiar with the matter.
The European Commission this year unveiled plans to provide $20 billion in funding to construct AI data centres to catch up with the U.S. and China.
The negotiations are said to be well advanced, but a formal agreement has not yet been reached, three people familiar with the matter told Handelsblatt.
(Reporting by Maria Martinez; editing by Diane Craft)
Artificial intelligence (AI) refers to the simulation of human intelligence processes by machines, especially computer systems. These processes include learning, reasoning, and self-correction.
A data center is a facility used to house computer systems and associated components, such as telecommunications and storage systems. It is crucial for managing data and applications.
The European Commission is the executive branch of the European Union responsible for proposing legislation, implementing decisions, and managing the day-to-day operations of the EU.
A gigafactory is a large-scale manufacturing facility designed to produce batteries or other components at a massive scale, particularly for electric vehicles and renewable energy.
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