Google has decided to cancel its plans to build its own data center in Mittenwalde, about 30 kilometers south of Berlin, according to a company spokesperson confirmed to the German news agency DPA. The announcement marks a significant shift in the multinational’s expansion strategy in the German capital, though the company assures it will continue operating in the region through leased data centers.
“After a comprehensive evaluation of feasibility, market development, and our business priorities, we have decided not to proceed with the Mittenwalde site,” said Google’s spokesperson.
However, the company emphasized that it remains committed to the Berlin-Brandenburg region and Germany overall, where it continues to lease space in third-party data centers.
The rise of Frankfurt and the reconsideration of Berlin
The cancellation of the Mittenwalde project coincides with a growing concentration of data centers in the Frankfurt area, considered a key hub due to its proximity to DE-CIX, one of the largest Internet exchange points in the world. This infrastructure enables low-latency data movements, making the region an ideal tech hub for cloud services and artificial intelligence applications.
In fact, Google launched a large data center in Hanau, near Frankfurt, in 2023, although only one of the three planned phases has been completed so far. The company also has two additional parcels in the Rhine-Mann region that could be used for new digital infrastructure developments.
A competitive landscape that doesn’t slow down
As Google reshapes its physical presence in Germany, other tech giants are ramping up investments. For example, Oracle recently announced a $2 billion investment in the country over the next five years, focusing on expanding its cloud infrastructure and meeting the increasing demand for AI-related services.
A decision with multiple implications
The cancellation of the Mittenwalde project could be due to several factors, including local soil conditions, permitting, energy availability, or a broader reorganization of global priorities within Google Cloud’s expansion plans. Nevertheless, the company insists its strategy in Germany remains active, likely relying more on leased infrastructure and colocation than on owned data centers.
This decision highlights the challenges that major tech companies face when establishing critical infrastructure in Europe, where access to the power grid, environmental sustainability, and urban planning regulations can influence project viability.
Meanwhile, the Berlin region will need to continue working to attract sustainable tech investments in a landscape that is becoming increasingly competitive and strategic for Europe’s digital economy.
via: dailyfinland