5.5 billion euros: Google's "GDP booster" for AI in Germany

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On Tuesday in Berlin, Google announced its largest investment in Germany to date: 5.5 billion euros by 2029. This will go towards the massive expansion of infrastructure for Artificial Intelligence (AI), new data centers, and innovative projects for renewable energies and waste heat utilization. Philipp Justus, Head of Google Germany, highlighted the scale of the undertaking: it's about 5.5 billion euros by 2029, "more than five times as much as in 2020" with the most recent initiative. No public money is involved.

The head of Google Central Europe announced the construction of a "state-of-the-art cloud data center" in Dietzenbach, Hesse, and the expansion of the existing one in Hanau. The commitment reinforces Google's dedication to "long-term growth in Germany" and will "secure a total of 9,000 jobs" here each year. These are "classic multiplier effects": when a company invests, further jobs are created at supplier companies.

Justus described the country as an "attractive location for AI because we have many companies here that possess a very large treasure trove of data." Google wants to bring "computing power closer to the German economy, to small and medium-sized enterprises." He also mentioned that the Google Cloud Region Berlin-Brandenburg already exists and is "live," albeit without its own data center.

Focus on Sustainability and Digital Sovereignty

The aspect of sustainability plays a central role, emphasized Marianne Janik, Head of Google Cloud Northern Europe. The US corporation is setting "completely new standards" in Dietzenbach. The plan is for the "first heat recovery project for more than 2,000 households," for which the company has reached an agreement with the local district heating provider. Cooling will be done using dry air to minimize water consumption. Another goal is to "use CO₂-free energy in all grids around the clock by 2030" for electricity supply. She stressed the efficiency of the new technology: it offers "four times the computing power" but consumes "84 percent less energy than an average data center. The first module is scheduled to go into operation in 2027.

Regarding digital sovereignty for Europe, which a US hyperscaler is supposed to ensure, Janik remarked: This development also needs "infrastructure." Google already offers three options where customers can choose "how much digital sovereignty they want." The manager referred to an existing cooperation with the Bundeswehr IT company BWI, which is, however, highly controversial. Kristina Sinemus (CDU), Hessian Minister for Digitization and Innovation, confirmed: "We have not automatically handed over all data to the USA." Contracts can be concluded in such a way that data usage occurs solely in Germany and Europe. Critics, however, point out that US laws also grant US authorities access rights in Germany and Europe.

Location Dietzenbach: Model Region from the 70s

Dieter Lang, the mayor of Dietzenbach, which he described as the city with the most children in Hesse, painted a picture of his municipality's suitability for the major project. The construction is "already associated with a whole series of superlatives." The SPD politician recalled that the area was already the "largest urban development measure in the Federal Republic" in the 1970s. Today, the conditions in this "real-world laboratory" are ideal: "For data centers, you need space, which is available in Dietzenbach." Furthermore, thanks to the Federal Network Agency, "high-voltage power has been exclusively laid for operators," including nine 110 kV lines.

Lang expressed confidence: The data center is a "milestone in sustainable architecture, embedded in nature." It fulfills "our climate adaptation concept in many aspects." The excavators are already rolling. Everything suggests "that we will be finished in 2027."

Federal Finance Minister Lars Klingbeil (SPD) viewed the investment as an "important signal for Germany as a location." The black-red coalition wants to modernize the country, secure and create new jobs, and "make it more attractive for private investment." The decision of an "international top player" is an important impulse for the "climate-neutral transformation" and strengthens the high-tech location. However, the Vice-Chancellor urged: "Individual success stories are not enough for us." Structural reforms, lower energy prices, and less bureaucracy are crucial.

Sinemus sees the investment as a "GDP booster." She emphasized that with the start of the DE-CIX internet exchange point, the Rhine-Main region is already number 1 in data centers across Europe and forms the backbone of the digital economy in Europe.

How Green Are Google Data Centers Really?

However, the project also raises concerns about rising energy consumption, the resulting need for CO₂ offset certificates, and a lack of transparency. Julian Bothe, Manager Climate Protection & AI at AlgorithmWatch, criticizes that such large investments require smart regulatory frameworks. Otherwise, there is a risk of increased dependence on fossil fuels and the unverifiable promises of large tech corporations.

Google states its intention to cover the hourly energy consumption of its data centers with its own generated renewable energy. However, figures for Germany from 2024 show, according to AlgorithmWatch, only 68 percent coverage when viewed hourly; the rest, it claims, came from fossil sources.

While Google publishes cumulative percentage figures on the use of renewables in Germany, these are neither independently verifiable, nor does the corporation disclose the total energy consumption of all its data centers in the country, Bothe complains. Furthermore, Google appears not to be complying with its obligation under the Energy Efficiency Act (EnEfG) to publish the energy consumption of its own operated data centers. The energy consumption from capacity rentals in data centers of other operators is also unknown.

Given the impending growth of data centers, Bothe considers strong regulation to be indispensable. He speaks of a "fatal signal" that the federal government wants to effectively abolish the EnEfG. With this, the executive branch endangers planning security and risks the failure of its own sustainability goals.

(mki)