Online search giant Google said on Tuesday it would invest 1 billion euros ($1.2 billion) in Germany through 2030 to expand its data center operations and secure renewable power supplies to run them.
The Alphabet unit will spend the money to expand its data center in Frankfurt and set up a new regional cloud computing operation centered on the capital Berlin, as well as source power from wind and solar operator Engie.
"This will bring us a step closer to using CO2-free sources of energy exclusively in our data centers," Philipp Justus, who heads Google in central and eastern Europe, told Reuters in an interview.
Europe's strict privacy laws have increased demand from companies to host data locally. At the same time the Berlin startup scene is booming and electric carmaker Tesla will soon launch production at a new factory nearby.
Google's investment follows a similar-sized bet on Germany by Silicon Valley rival Apple, which is setting up a semiconductor design bureau in Munich. ($1 = 0.8448 euros) (Reporting by Nadine Schimroszik, Writing by Douglas Busvine, Editing by Kirsti Knolle)
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