Lidl owner to invest up to $6.5 billion by 2033 in data centre in northern Germany

Aug 27 (Reuters) - Germany's Schwarz Group, owner of discount retailer Lidl, said on Thursday it would spend up to €5.6 billion ($6.5 billion) on a data centre in northern Germany amid a push by European countries to become less dependent on overseas providers of cloud and AI services.

Construction of the complex near the city of Rostock, which is expected to create 120 jobs, is set to begin in 2027, Schwarz CEO Gerd Chrzanowski and Social Democrat state premier Manuela Schwesig told a press conference.

By 2033, the data centre in the state of Mecklenburg-Western Pomerania will have a capacity of 240 megawatts - equivalent to the average energy consumption of 600,000 households - with potential to expand capacity to 1 gigawatt by 2045, the German supermarket conglomerate said in a statement.

Plans include the exclusive use of renewable energy during normal operation and a closed-loop water cooling system, which limits water consumption.

Schwesig also said talks were underway with Rostock to use excess heat for residential heating.

The project addresses German political leaders' concerns over cybersecurity risks as well as dependence on providers based in the United States and other overseas countries, Schwesig said.

"We have already missed the boat when it comes to the whole issue of so-called social media platforms; we must not now miss the opportunity to go our own way here in Germany."

Mecklenburg-Western Pomerania goes to the polls in a state election in September, with incumbent premier Schwesig facing a challenge from the far-right Alternative for Germany.

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(Reporting by Tom Kaeckenhoff, Linda Pasquini and Cian Muenster, editing by Friederike Heine, Ludwig Burger and Susan Fenton)