German Firms to Submit Separate EU Bids for AI Data Centre, Report Says
Several major German companies — Deutsche Telekom, Ionos, and the Schwarz Group’s IT subsidiary — plan to submit separate bids to the European Union for funding to build an AI data processing centre, according to Germany’s Tagesspiegel newspaper.
The European Commission has announced plans to allocate $20 billion to support the construction of AI data centres aimed at helping Europe catch up with the U.S. and China in artificial intelligence capabilities.
Under the current German government coalition agreement, Chancellor Friedrich Merz’s conservative party and the Social Democrats have prioritized having at least one of these AI centres located in Germany.
In May, Deutsche Telekom revealed it had partnered with SAP, Ionos, and the Schwarz Group to jointly seek EU funding for an “AI gigafactory” — a specialized facility designed to meet the massive computing demands of AI. However, the Tagesspiegel report noted that SAP is no longer involved in the bid.
SAP did not comment on the bidding process itself but said it is not pursuing a role as operator or investor in AI gigafactories. Instead, SAP aims to contribute as a technology and software provider to future AI data centre projects in Germany and Europe.
Ionos told Reuters that the expression of interest being submitted to Brussels this Friday is an initial step, with a formal application planned later this year alongside partners.
The Schwarz Group declined to confirm whether it will submit a separate bid, stating that if a German consortium is formed, all relevant parties will be invited to contribute to creating the fastest, most reliable, and most convincing AI gigafactory.
Deutsche Telekom did not respond to Reuters requests for comment.



