Alphabet’s Google is set to invest around €5 billion ($5.8 billion) in Germany as part of a large-scale expansion of its digital infrastructure and data centre capacity in Europe’s largest economy, sources familiar with the matter told Reuters on Tuesday.

The investment underscores Google’s deepening commitment to strengthening its European footprint amid growing demand for artificial intelligence (AI) services and sustainable cloud infrastructure.

According to the sources, the plans include the construction of a new data centre in Dietzenbach, near Frankfurt, and the expansion of an existing Google site in Hanau, also within the Frankfurt metropolitan area. The region is considered the heart of Europe’s internet traffic, hosting major data hubs that connect businesses across the continent.

While Google has not publicly confirmed the size of the investment, one source described it as a “mid-single-digit billion euro” commitment, indicating one of the company’s most significant infrastructure pushes in Europe to date.

A spokesperson for Google previously stated that the company was “investing billions in Germany” to address key challenges of the future — including advancements in artificial intelligence, digital innovation, and climate-neutral transformation.

Germany’s Finance Minister, Lars Klingbeil, is expected to speak at a press conference scheduled for 4:30 p.m. (1530 GMT) on Tuesday, where more details of the plan are anticipated.

The move aligns with Google’s broader strategy to expand its sustainable data operations, as European governments increasingly emphasize energy efficiency and carbon neutrality in digital infrastructure projects. It also comes at a time when global demand for AI-driven computing capacity is soaring, pushing major tech firms to accelerate investments in server farms and green energy partnerships.

Analysts note that Germany’s strong industrial base, digital transformation agenda, and emphasis on renewable energy make it a strategic location for technology investments.

Google’s latest expansion follows similar commitments in Denmark, Finland, and the Netherlands — positioning the company as a major driver of Europe’s digital and climate-neutral economy.