Dieter Schwarz, the retail magnate who has amassed Germany’s largest fortune through his supermarket empire, is now setting his sights on challenging global technology leaders like Google, Microsoft, and Amazon. His new venture, Schwarz Digits, is poised to become a significant player in digitalization, with an entire region set to benefit from the substantial investments.
Bernd Wagner, responsible for cloud business and sales at Schwarz Digits, expressed immense enthusiasm for the company’s new headquarters. The campus, slated for official opening on July 21, 2026, in Bad Friedrichshall, a small town in southern Germany, is a testament to the ambition. Wagner highlighted the extensive construction, noting the use of “seven times as much steel as was used to build the Eiffel Tower” and “cables stretching all the way to Naples.” The facility is designed to accommodate 3,500 employees and includes amenities such as a daycare center, restaurant, and fitness facilities, drawing comparisons to the headquarters of major US tech firms.
The Schwarz Group, known for its Lidl and Kaufland supermarket chains, has a history of expanding its operations in-house, encompassing food production, waste management, and recycling. Digitalization is the latest frontier. In the previous year, the conglomerate reported revenue of nearly €185 billion, surpassing major German companies like SAP, Mercedes, and Bayer, with only Volkswagen generating more revenue in Germany.
Schwarz Group founder Dieter Schwarz, 86, has maintained a low public profile throughout his career, with very few photographs of him existing. Despite his wealth and influence, he reportedly moves freely in his hometown of Heilbronn without recognition. The Schwarz Group’s current focus on digital independence and establishing Germany as an innovation hub is a new chapter for the secretive conglomerate.
Schwarz Digits has primarily managed the IT infrastructure for approximately 14,500 supermarkets globally. Now, the company is extending its cloud and security solutions to external businesses and government agencies. Wagner stated the overarching goal is to help Germany and Europe reclaim their position in the global tech landscape, reducing dependency on technology from the United States and China and “restore Europe’s ability to act.”
This strategy appears to be gaining traction, with Schwarz Digits securing significant contracts from clients including the Dutch government, various German ministries, and the German Football Association (DFB). A major investment of €11 billion is being directed towards building a data center in the Spreewald region, south of Berlin, marking the company’s largest single investment to date.
While the cost of the new Bad Friedrichshall headquarters remains undisclosed, its purpose is clear: to attract and retain IT talent by offering a compelling alternative to Silicon Valley. This initiative aligns with Dieter Schwarz’s long-held belief that success hinges on people, talent, and education, a principle embodied by the Dieter Schwarz Foundation, active since 1999 in supporting education, science, research, and entrepreneurship.
The foundation’s influence is visible in Heilbronn, where the Education Campus trains around 8,000 students with plans for expansion, and the Experimenta, Germany’s largest science center, provides hands-on experience with AI and technology, becoming a city landmark and tourist attraction. Heilbronn’s mayor, Harry Mergel, a proponent of the Experimenta, acknowledged the significant funding from the Dieter Schwarz Foundation. Mergel noted the city’s transformation from its former nickname, “Heilbronx,” to a city with high purchasing power, attracting international residents due to IT job growth.
Further enhancing Heilbronn’s international profile is the Innovation Park Artificial Intelligence (IPAI), aiming to rival cities like London and Paris. Expected to employ up to 5,000 people, the IPAI is a collaborative effort involving the Dieter Schwarz Foundation and the Schwarz Group, with the first buildings scheduled for a 2027 opening. The AI innovation park, operating as a network since 2022, already involves around 140 companies and partners.
Mayor Mergel views the IPAI as an “insurance policy for the region,” emphasizing that competitiveness in the future will require AI integration across all sectors. He stated, “The future is being built in Heilbronn.”
Wagner is confident that the region will become a leading AI hub in Germany and Europe, with Schwarz Digits at its core. Despite the significant revenue gap, with Amazon alone generating $135 billion in cloud revenue last year compared to Schwarz Digits’ €2.2 billion across all activities, Wagner remains resolute. “We are here to stay,” he asserted, believing that the urgent need for independent IT solutions in Germany and Europe will create ample opportunities.
While Wagner’s call for digital sovereignty might be seen as a public relations effort, Dieter Schwarz’s proven business acumen suggests a strategic long-term vision. As Europe’s largest and the world’s fourth-largest retailer, the Schwarz Group’s backing provides a strong foundation for Dieter Schwarz’s ambitious venture into the tech world.
Mergel has been mayor of the city of more than 130,000 residents since 2014. He, too, speaks sparingly about Schwarz, the prominent patron who continues to live in the city and prefers to stay out of the spotlight. "Everyone has the right to anonymity," Mergel says.
From Heilbronn's city hall, it takes just a 15-minute drive to the Schwarz Digits headquarters. There, a cooking robot prepares six different dishes around the clock for the IT talent.
