Schwarz Group to Build Major Data Center Campus in Lübbenau

The Schwarz Group, parent company of well-known retail brands Lidl and Kaufland, has announced plans to establish a substantial data center facility in Lübbenau, Brandenburg. Construction will commence with an official groundbreaking scheduled for Monday, marking the start of a project that aims to bolster Germany's digital infrastructure.

The planned data center will be developed as a campus comprising six independent modules. This modular design is intended to ensure high reliability and operational security by allowing each unit to function autonomously. The total planned power capacity for the facility is set at 200 megawatts, placing it among the significant data center projects in the country. The company expects to make the first operational capacities available in the latter half of 2027.

This initiative marks the Schwarz Group's first data center project in Brandenburg. Previously, the company's primary data infrastructure had been concentrated near its headquarters in the Heilbronn region. The expansion into Brandenburg is seen as a strategic move, given the region's advantages for large-scale digital infrastructure projects.

Several factors contributed to the selection of Lübbenau as the site for this major investment. Key considerations include the availability of renewable energy sources, large development plots that allow for future expansion, access to a skilled workforce, and robust local infrastructure. Additionally, the proximity to the Luckau-Lübbenau municipal and regional power plant offers a unique opportunity to utilize the data center's waste heat, supporting local energy efficiency and sustainability efforts.

Industry bodies highlight the critical role of data centers in supporting digital transformation across all sectors of society. Modern data centers are essential for delivering the computing and storage capabilities required by businesses, public administration, and daily life. From real-time financial transactions to the management of electronic health records, a secure and scalable data infrastructure underpins nearly all data-driven processes.

Germany currently holds the position of leading data center market in Europe, with local facilities providing an estimated total capacity of approximately 2.4 gigawatts. However, international comparisons show significant gaps, particularly with the United States, which boasts a data center capacity of around 40 gigawatts. Despite this, Germany remains attractive due to its central location within Europe, proximity to major internet exchange points such as Frankfurt am Main, and highly reliable utility networks.

Nevertheless, the sector faces notable challenges. Among them are high energy costs and protracted approval processes for new developments, which can slow down the deployment of critical digital infrastructure. Addressing these hurdles is essential to maintaining and enhancing Germany's competitiveness as a data center hub.

The new data center in Lübbenau is positioned to contribute meaningfully to the ongoing digitalization efforts in Germany and Europe, reinforcing the country's infrastructure backbone and supporting the increasing demand for secure, scalable, and sustainable data services.