Tech giant Google on Tuesday unveiled plans to invest 5.5 billion euros ($6.4 billion) in Germany by 2029, marking its largest-ever financial commitment in the country as Europe races to strengthen its position in the global artificial intelligence (AI) sector.
The investment will fund a new data centre and the expansion of existing facilities in the western state of Hesse, alongside projects focused on sustainability and digital innovation.
The announcement follows a recent partnership between AI chipmaker Nvidia and Deutsche Telekom to establish a high-tech hub in Munich aimed at accelerating industrial adoption of AI technologies.
German Chancellor Friedrich Merz hailed Google’s investment as a major boost for Europe’s largest economy, which has faced slow growth in recent years.
> “We are driving growth in Germany,” Merz said at the event. “Our country is and will remain one of the most attractive places for investment in the world.”
Google said the new data centre will provide computing power for AI applications while supporting around 9,000 jobs annually. The tech company also plans to expand its offices in Berlin, Frankfurt, and Munich.
In addition, Google announced several green initiatives, including investments in renewable wind and solar energy and a heat recovery project that will reuse excess heat from its data centres to benefit local residents.
> “Google is deepening its roots in Germany, extending our investments in the country and creating new avenues for AI-driven transformation,” said Philipp Justus, Google’s Country Manager for Germany.
The move aligns with Germany’s broader strategy to attract foreign investment and revitalise its digital economy, as traditional industrial sectors face mounting challenges.
The new projects also come amid growing concerns over Europe’s reliance on U.S. tech companies in critical sectors like AI and data storage.
Addressing these concerns, Google highlighted its commitment to “sovereign cloud computing,” assuring European clients that data will be handled in accordance with local privacy regulations and “European values.”
Kristina Sinemus, Hesse’s State Minister for Digital Strategy, dismissed fears of data insecurity, saying collaboration with U.S. firms did not mean automatic data transfer abroad.
> “We don’t automatically hand over all the data to the U.S. with a U.S. investor,” she said. “We need to stop thinking in black and white terms because it’s a bit more complex than that.”
Industry group Bitkom estimates that Germany’s total data centre computing power will rise by 70 percent by 2030, though Europe still lags behind the United States and China in total capacity.
The Google announcement is expected to bolster Europe’s ongoing efforts to close that gap and strengthen its competitiveness in the global AI race.
