BERLIN — Google will invest around 5 billion euros $5.8 billion in Germany to expand its data center network and digital infrastructure, according to sources familiar with the matter.
The investment, among the company’s largest in Europe, underscores Google’s growing commitment to strengthen its presence in the continent’s largest economy and advance its climate neutral technology ambitions.
The plans include building a new data center in Dietzenbach, near Frankfurt, and expanding an existing site in Hanau, also in the Frankfurt metropolitan region, the sources said.
A press conference is scheduled for Tuesday afternoon, where German Finance Minister Lars Klingbeil is expected to discuss the initiative alongside Google executives.
Germany has become a crucial hub for global technology companies seeking to serve European markets. Frankfurt, in particular, is one of the continent’s major internet exchange points, making it an attractive site for data centers and cloud services.
Google has previously stated that it would invest “billions in Germany” to advance innovation, artificial intelligence, and the transition to a climate neutral economy.
This new round of funding marks a continuation of that strategy and reflects increasing demand for data infrastructure to support digital transformation and generative AI applications.
The announcement follows similar commitments from other tech giants. In 2023, Amazon Web Services pledged to invest €7.8 billion in Germany by 2040 to build cloud infrastructure powered by renewable energy.
Microsoft also unveiled plans earlier this year to expand its data center footprint across Europe, citing strong customer growth and the adoption of AI services.
Industry analysts view Google’s planned investment as a strategic step to secure its competitive position in the European cloud and AI market.
“This move signals Google’s intent to play a leading role in Europe’s data sovereignty landscape,” said Markus Heine, a technology analyst at Digital Economy Research Institute in Berlin.
“Germany’s strict data protection laws and its commitment to renewable energy make it a key market for future AI infrastructure.”
Heine added that the investment would likely strengthen Google’s enterprise cloud offerings while aligning with the European Union’s push for digital independence and sustainable technology.
Eva Schneider, an economist with the German Economic Institute, said the investment could generate significant local economic benefits.
“Beyond the direct construction and operations impact, this will create new opportunities for small and medium-sized enterprises that rely on cloud computing and data analytics,” she said.
Germany is one of Europe’s largest cloud markets, accounting for nearly a quarter of the region’s total data center capacity.
According to data from Statista, the country hosts more than 400 operational data centers, with Frankfurt leading as the top destination for hyperscale projects.
Google’s investment in Dietzenbach and Hanau is expected to add several hundred megawatts of capacity to the region’s data infrastructure.
The company has also committed to sourcing 100 percent of its energy use from renewable sources, aligning with Germany’s goal to become climate neutral by 2045.
Globally, Google has pledged more than $30 billion in infrastructure spending over the past five years, with significant investments in Ireland, Denmark, and the Netherlands.
The company’s latest focus on Germany highlights a shift toward reinforcing its European operations amid rising digital demand and regulatory scrutiny over data governance.
Local officials in Hesse, where both Dietzenbach and Hanau are located, welcomed the investment as a sign of confidence in the region’s economic strength.
“Google’s decision to expand in our area is a vote of confidence in Hesse as a center for digital innovation,” said Petra Koch, mayor of Dietzenbach.
“It means not only new jobs but also long term partnerships with local suppliers and educational institutions.” Residents in the area expressed cautious optimism about the development.
“It’s encouraging to see major tech companies investing in our town,” said Jonas Becker, a local IT specialist.
But we hope they’ll also focus on sustainability and minimize their environmental footprint. Environmental advocates have urged Google to maintain transparency about the project’s carbon impact.
“Data centers consume enormous amounts of energy and water,” said Lea Hoffmann, spokesperson for the environmental group Clean Tech Future.
If Google truly wants to lead on climate neutral transformation, it must ensure these facilities set new standards in efficiency.
The announcement comes as European governments intensify efforts to attract tech investments amid the global race for digital infrastructure.
Germany, France, and the Netherlands have all introduced incentives to draw cloud service providers while tightening rules on data privacy and AI ethics.
Google’s expansion is expected to enhance the company’s capacity to deliver faster and more secure services to European customers.
It also positions the US tech firm to better compete with Amazon, Microsoft, and Oracle in the region’s lucrative cloud computing market.
Analysts anticipate that the new German facilities will become operational within the next three to five years, depending on permitting and construction timelines.
The sites will likely support Google Cloud, YouTube, and AI driven products requiring high speed data processing. Google’s planned €5 billion investment marks a milestone in the tech giant’s European strategy, combining infrastructure growth with sustainability and innovation goals.
As Germany strengthens its role as Europe’s digital backbone, the move highlights how global companies are adapting to new demands in AI, data security, and green transformation.
The company’s announcement, expected later Tuesday, will likely offer further details on project timelines and environmental commitments reinforcing how the digital economy continues to reshape Europe’s industrial landscape.