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Deutsche Telekom, Schwarz in Advanced Talks on EU-Backed AI Gigafactory Bid

The bid targets EU co-funding for a Germany-based compute hub to bolster European AI sovereignty.

Overview

  • Handelsblatt, citing multiple insiders, reports the companies are in far-advanced negotiations on a joint proposal, though no formal agreement has been announced.
  • A Schwarz Digits co-CEO, Rolf Schumann, said the firm has teamed up with Telekom to bring the gigafactory to Germany, signaling intent despite the lack of a confirmed deal.
  • Brookfield is mentioned in reports as a possible financier for the project, but financing arrangements remain unconfirmed.
  • Both firms are pursuing separate data center investments in parallel, with Telekom building a Munich AI facility with Nvidia for over €1 billion and Schwarz developing an €11 billion site in Lübbenau without state aid.
  • The EU plans four to five large AI data centers with up to 35% public co-funding, estimating €3–5 billion per site, a push driven by Europe’s limited share of high-performance AI chips compared with the U.S.