Leading German IT industry leaders say that setting up a AI‑gigafactory in Germany is financially unfeasible. According to the specialist service “Tagesspiegel Background Digitalisierung & KI” the lack of money is the main obstacle.
“Ionos CEO Achim Weiß told reporters that if there are only four billion euros for five gigafactories, the project is dead” he said when asked about the EU Commission’s funding plans. Both Ionos and Deutsche Telekom have voiced concerns about the uncertainties around European co‑financing for the large AI data centres that are slated for five sites across the continent.
The EU Commission had originally presented a five‑gigafactory plan in its Digital Strategy with an expected investment of 20 billion euros. Internal EU documents cited by “Tagesspiegel Background” reveal that the total EU budget contribution is capped at a maximum of four billion euros. The remaining sum would have to come from member states and the European private sector, with private investors expected to fund the ongoing operations alone.
Telekom CEO Tim Höttges reiterated this view at the 23rd International Cartel Conference in Berlin, where his company is applying jointly with the Schwarz Group. “Under these circumstances we will not build them” he said. “Telekom does not need a gigafactory; Germany and Europe do”.
