Europe Emerges as the New AI Battleground: Google Invests 9 Trillion Won, Microsoft 14 Trillion Won

Google and Microsoft to Establish Data Centers in Germany and Portugal
Nvidia and Anthropic Also Expand Investments and Collaborations in Europe

Major U.S. big tech companies are ramping up large-scale investments in artificial intelligence (AI) infrastructure across Europe. Google and Microsoft are planning to build data centers worth several trillion won in Germany and Portugal, while leading AI companies such as Nvidia and Anthropic are expanding local collaborations and offices. As these moves align with the European Union (EU)'s trend toward easing AI regulations, attention is focused on whether Europe will emerge as a new hub for the AI industry.

EPA Yonhap News

On November 11 (local time), Google, a subsidiary of Alphabet, held a press conference in Berlin, Germany, announcing its plan to invest 5.5 billion euros (approximately 9.3 trillion won) in building AI infrastructure in Germany by 2029. Google estimated that this investment would contribute an average of 1.016 billion euros (about 1.7 trillion won) annually to Germany's gross domestic product (GDP) and create 9,000 jobs.

With this investment, Google will construct a new data center in Dietzenbach, a city near Frankfurt-the economic center of Germany-and expand the Hanau data center, which opened in 2023. Google explained that the computing resources established through these projects would help Europe expand its AI capabilities while complying with local regulations such as restrictions on cross-border data transfers.

The electricity required for these data centers will be supplied by purchasing clean energy from the German energy company Engie. Google plans to expand its carbon-free energy (CFE) partnership with Engie, increasing the use of both onshore and offshore wind as well as solar energy. Through these efforts, Google expects that its German operations will be able to increase the share of carbon-free energy to 85% by 2026.

Additionally, Google will expand its Munich office, 'Arnulfpost,' which was originally used as the German Post Office in the early 20th century, and also enlarge its offices in Frankfurt and Berlin.

Lars Klingbeil, Germany's Vice Chancellor and Minister of Finance, who attended the press conference, described Google's investment as "an important signal that Germany is a base for business." Vice Chancellor Klingbeil mentioned that the German government has established an infrastructure fund, but clarified that no state subsidies will be provided for this Google investment.

According to reports from Bloomberg and others on the same day, Microsoft will invest 10 billion dollars (about 14.6 trillion won) to build a data center in Sines, a port city located 150 kilometers south of Lisbon, Portugal. In this investment, Microsoft will collaborate with Nvidia, data center developer Start Campus, and AI infrastructure platform nScale. Brad Smith, President of Microsoft, emphasized, "This investment is helping Portugal set the standard for responsible AI development within Europe."

Industry experts note that Portugal's Atlantic coast is regarded as an optimal location, serving as a key hub for undersea cables connecting Europe, Africa, and the Americas, and playing a central role in the World Wide Web (WWW).

In addition, on November 4, Nvidia announced that, together with Deutsche Telekom, it would invest 1 billion euros (about 1.7 trillion won) to establish the world's first AI industrial complex in Munich. Anthropic, which operates the AI chatbot 'Claude,' recently opened new offices in France and Germany and expanded collaborations with the United Kingdom and Iceland.

The European Commission is reportedly considering regulatory easing, such as streamlining AI-related laws, to attract regional investment from AI companies.