In a surprising move, Schwarz Group, the German conglomerate that owns the Lidl supermarket chain, has entered the cloud computing sector. This step, which might seem unexpected to many, represents a significant leap for Europe in creating a local alternative to American giants like AWS and Azure and Google.

Lidl has developed a cloud platform offering cloud computing services, cybersecurity, and artificial intelligence. Initially created to manage the sensitive data of Lidl and Kaufland stores, this platform has caught the attention of major German companies like SAP and Bayern Munich. Strict privacy regulations in Germany and Austria pushed Lidl to develop an internal solution, thus avoiding sending sensitive data to American platforms.

Schwarz Group’s journey into cloud computing began with a series of strategic acquisitions of companies specialized in pen-testing, cybersecurity and AI. These investments have enabled Schwarz Group to strengthen its technological infrastructure and offer high-quality cloud services generating in 2023 1.9 billion in revenue by selling unused capacity from its data centers to high-profile Customers.

Lidl’s entry into cloud computing is good news for Europe. Creating a local alternative to American giants not only strengthens European digital sovereignty but also offers local companies a solution compliant with European privacy regulations. This development could mark the beginning of a new era for cloud computing in Europe, with Lidl as one of the main players.

Lidl anticipated Amazon with this move, because last year Amazon Web Services announced AWS European Sovereign Cloud.

We’ve announced plans to launch the AWS European Sovereign Cloud, a new, independent cloud for Europe, designed to help public sector organizations and customers in highly regulated industries meet their evolving sovereignty needs. The AWS European Sovereign Cloud will provide customers the capability to meet stringent operational autonomy and data residency requirements. The AWS European Sovereign Cloud is planning to launch its first AWS Region in Germany by the end of 2025, available to all customers.  

What are your thoughts on Lidl’s move? Do you think it can compete with the American cloud giants, or in this case, can Amazon compete with Lidl given that its European Cloud will open no earlier than the end of 2025?