What's Up with Tech?

Discovering NRW: Germany’s Tech Powerhouse in the Heart of Europe

Evan Kirstel

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Step into the future with us as we explore the transformative journey of North Rhine-Westphalia (NRW), a region evolving from coal-based industries to a leading force in technology and sustainability. In this rich discussion, we speak with representatives from NRW Global Business, who share insights into how this vibrantly diverse region is positioning itself as a technological powerhouse in the heart of Europe. With substantial investments flowing in, including a landmark partnership with Microsoft for hyperscaler data centers, NRW is poised to create thousands of new jobs and stimulate innovation.

We examine the strategic geographical advantages that make NRW attractive to global tech players, fostering collaboration between businesses and renowned educational institutions. Through these partnerships, the region is building an ecosystem that facilitates cutting-edge research and development in sectors like artificial intelligence and robotics. As NRW embarks on this ambitious endeavor to become Europe's first climate-neutral industrial area, we delve into the remarkable projects that showcase its commitment to sustainability and technology advancement.

Get ready to discover why NRW's evolution is not just a local story but a blueprint for regions worldwide seeking to reinvent themselves in the digital age. Join us on this enlightening journey and find out how you can be part of it! Don’t forget to subscribe, share, and leave us a review to help spread the word about this exciting transformation.

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Speaker 1:

Evan Brand. Hey everyone, it's Evan here. We have less than a week to go to Mobile World Congress in Barcelona and, in advance of that, I'm super excited to talk about a region that is an up a trade agency behind Germany's largest and most economically developed federal state, nordrhein-westphalia, and, as a Germanophile, I'm delighted to have the team from NRW Global Business on the show. Thanks very much for joining us, ladies.

Speaker 3:

Hi thank you so much. Thanks for having us, thanks for the show, thanks very much for joining us. Ladies Hi, thank you so much.

Speaker 2:

Thanks for having us, thanks for the invitation, thanks for the opportunity.

Speaker 1:

Let's start with some introductions. First to Joanne Maybe introduce yourself and your mission at NRW.

Speaker 2:

Yes, so I'm Joanne Gamuto. I actually live in the Rheinisches Revier and, yeah, I'm doing the marketing for this beautiful region.

Speaker 1:

Fantastic and Tina, we've spoken before. You've been very active in the global tech industry. Maybe introduce yourself and your role at NRW. Maybe introduce yourself and your role at NRW.

Speaker 3:

Yes, hello everybody. My name is Tina Schrader. I am 28 years old and I am a project coordinator in the special project Rheinisches Revier and I'm part of the team for acquisition.

Speaker 1:

Fantastic, well, great to have you here. We're going to dive into all things tech and geography and futurism here. Before that, maybe let's start with a bit of an intro. Many of us here are a bit geographically challenged in the US, but as a lover of all things German, I know the Rheinische Gebiet, the Rhineland area and as a wine area, something I enjoy tremendously German wine but beyond that, it's also known as an area that's very attractive to international tech investors, particularly in areas like data centers and AI and network infrastructure. Maybe talk about that, tina. What's been the driver behind that interest and the tremendous success you're having with global players in tech?

Speaker 3:

Okay, evan, let me all take you on a little journey. So imagine you're standing in the heart of Europe, right where cultures, industries and innovations converge. This is the Rheinsches Revier. It is just a stone's throw away from the Netherlands and Belgium, nestled between the vibrant cities of Aachen, düsseldorf and Cologne, as you can see on the map. Between the vibrant cities of Aachen, düsseldorf and Cologne, as you can see on the map. So NRW is not only the largest federal state in Germany in terms of area and population, but it's also known as the most important economic center within Germany. And now picture this maybe you land at Düsseldorf Airport after an international flight and within minutes you're on a high-speed train passing by cutting-edge research institutions, bustling business hubs and vast development areas, ready for the next big idea.

Speaker 3:

I would say our region isn't just well-connected, it is literally a powerhouse. There is a lot of energy-intensive industry here, but also a vital tech sector with an annual turnover of around 15 billion euros, many global players and around, I think, 400 companies from the cybersecurity sector. But of course, it is not just all about business. Life here also is exceptional, is exceptional. So, whether you're drawn to the, let's say, the cultural scene of Cologne, the historic charm of Aachen or the dynamic energy of Düsseldorf, you are never far from a major metropolis. The Rheinsches Revier offers both the space and the infrastructure to grow. So whether you're looking for brownfield redevelopment opportunities or greenfield investment potential and with 60 million people living within a 250-kilometer radius, the talent pool here is just immense. Most importantly, rheinsches Revier is known as Europe's largest lignite mining region, ensuring energy reliability for centuries, but it also has a very diverse economy. But, joan, I think we'll come to that one later For sure. And now I come to Joan's and my job that we briefly mentioned.

Speaker 3:

Germany has decided to stop mining and generating electricity from lignite in the near future, and with this decision it was clear that the Rheinisches Revier would undergo a huge transformation process. So our goal for the region is to become Europe's first climate-neutral industrial region, and the starting position for that is very good. For the federal government and the state, the transition here is a top priority, which is reflected in a budget of 14.8 billion euros. But we also know that a project as large as the transformation of the Rheinisches Revier requires the collaboration of all stakeholders and partners. So that means expertise from champions from all over the world, and that's why we are targeting international companies and, john, I think we want one thing to really stick with them. There is only great commercial space, skilled workers and funding here, but also the chance to participate on such an exciting process of change, just overall.

Speaker 1:

Wow, wonderful message and I can certainly personally attest to the amazing infrastructure and culture and history of the region, but you also have an amazing digital footprint that's growing, joanne. So maybe talk about the industries, the digital industries that are top of the list, the investments that are being made, some of the investors that have already committed to the region, and what is the vision for a future digital society in the Rheinisches Revier.

Speaker 2:

Yes, so we are definitely not starting on a blank sheet of paper in the Rheinisches Revier. Yes, so we are definitely not starting on a blank sheet of paper in the Rheinisches Revier. There's probably nowhere else in Germany with such an application-oriented scientific landscape. The RWTH Aachen University and the Forschungszentrum Jülich are internationally known when it comes to AI, robotics and quantum computing, but we will come back to this later. For sure, on the other hand, several renowned companies are already on site. A computer center from the UK has been based in Kaepernick for a long time now, and Quanta Computer is already based in Eschweiler and will be soon opening a state-of-the-art factory in the Brainergy Park in Jülich, where components of autonomous driving will be manufactured. I could also list a large number of other companies, including Extron, for example, which is a global leader in plant engineering for semiconductor production, and there's also a very lively startup scene, especially in the Aachen area. However, microsoft will bring completely new impulses, especially for topics like AI and cloud computing.

Speaker 1:

Yeah, the Microsoft announcement is a blockbuster one. Maybe talk about that in a little more detail. They're building two hyperscaler data centers in the Rheinisches Riviere. They're the core of Microsoft's largest investment package in Germany to date. Maybe talk about the reasons, the rationale for the Rheinisches Riviere, the geostrategical advantages and other reasons they decided on the region.

Speaker 2:

Yeah, of course. So for the manufacturing companies we address, we like to emphasize that the Rheinsches Revere is really located in the heart of Europe, close to larger sea and inland ports, and is perfectly connected in terms of infrastructure. But we also offer digital players a relocation advantage because the Rheinsches Revier is where two data roads intersect. One connects the two hubs of Dublin and Frankfurt, passing through major data hubs in London and Amsterdam. The second data road runs from Stockholm to Frankfurt, connecting data centers of German industries, american content providers and European institutions. So the Rheinisches Revier is where both roads meet at a location where over 60 million potential users can be reached in less than 20 milliseconds, all within a radius that Tina already mentioned of just 250 kilometers.

Speaker 3:

Tina already mentioned, of just 250 kilometers, and these are simply the best conditions for hyperscalers. So Microsoft, the company itself, mentions that the two hyperscalers will increase cloud and AI capacity for all of Germany, so not just the Rheinsches Revier. So, in line with this, microsoft is also funding an AI training initiative for local businesses as well as for career orientation.

Speaker 1:

That is fantastic. So it's not just about the hyperscaler, the data centers, which are foundational infrastructure, but it's about this ecosystem that, in part, microsoft with RDW is building together, that, in part, microsoft with RDW is building together. Maybe talk about that ecosystem and how many other companies can now connect and collaborate as part of that ecosystem.

Speaker 3:

That's right, it is an ecosystem. So we are building two state-of-the-art areas that will even preserve the legacy of the region as a coal hub, as they are being developed on the site of old power plant grounds, which are quite cool and fascinating, to be honest. So the slogan of the prime minister of NRW, from coal to AI, will be particularly visible here, and companies that rely on fast data transfer speeds and work with large amounts of data will make this their home, and, in total, 5,000 new jobs are expected to be created and, of course, hopefully a lot of innovative business models as well. Also interesting is that B2Parks will have different specializations, which is also interesting to mention here will have different specializations, which is also interesting to mention here. One will focus primarily on the development of software and data models, while the other will, among other things, work on solutions for the industry and the energy sectors, so the industries where there are already plenty of champions in the region like Bayer or the SMS Group, for example Fantastic.

Speaker 1:

And it's not the only area of focus in these two digital parks. I understand generally AI and robotics, where Germany has been a leader for many decades. So there's a pretty big transformational budget 15 billion euros being assigned to grow this opportunity. What are some of the other large projects that you could talk about at this point?

Speaker 3:

Yes, evan. As you mentioned, the state of North Rhine-Westphalia aims to transform the Rheinsches Revier into a sustainable digital region overall. So the two key projects in this effort are hyperscalers and digital parks. But another major initiative is the so-called AI Village in Hürth. Covering over 12,000 square feet, it will become Europe's first fully digitalized campus dedicated exclusively to the research, development and demonstration of AI and robotic applications. So to achieve this, the AI Village brings together startups, established companies and the research community, providing them with real-world labs for testing. So, specifically for startups, there will naturally be a range of incubator and accelerator programs.

Speaker 2:

And another key project I would like to mention is Neurotic 2. The goal is to establish an international center for neuromorphic computer chips in the Aachen area. That are AI chips that can store and process data simultaneously, making them significantly more energy efficient. The project brings together various high-tech companies in collaboration with the RWTH Aachen and the Forschungszentrum Jülich RWTH.

Speaker 1:

Aachen and Forschungszentrum Jülich Wonderful. I love the focus on research. You mentioned that several times now and you have incredible research and institutions in the area. What makes that location so good when it comes to you know the scientific landscape? Is it the large? You know research institutions? The scientific landscape Is it the large? You know research institutions? There seems to be a lot of partnering as well with research and institutions and industry. That sounds like something you're really trying to help facilitate.

Speaker 3:

Mm-hmm, that's true. While we are a relatively small region, the international reputation of our research institutions could hardly be greater that's what I would say, especially in the field of digital technologies. Our time are typically reflected through dedicated chairs and institutes that are involved in countless research projects. And, as the example of Neurotech 2 shows, which John just mentioned, the scientific institutions in the region always work closely together with companies, so this means they are highly application oriented. Maybe I'll just mention two examples to show exactly that. So first, RWTH Aachen. It has a technical focus and is officially recognized as Germany's excellence university. It has its own AI center and an institute for transmission technology, machine dynamics and robotics. Its European 4.0 transformation center involves major global players like Fushitsu and Hewlett-Packard, for example. And, of course, companies here not only find reliable research partners, but also top-trend professionals and a strong startup scene that has developed directly from the university.

Speaker 3:

And my second example is the Forschungszentrum Jülich, which, like RWTH, is involved in Neurotech 2. So over, let me just check. 7,000 people work here across 14 institutes which focus on areas such as quantum computing and AI. And this is where AI meets supercomputing, primarily at the Jülich Supercomputing Center. It houses Europe's first quantum computing infrastructure and one of the most powerful supercomputers in Europe, running dozens of AI projects. Just two brief examples. There are also several Fraunhofer Institutes in our region and another highly renowned university, the FH Aachen.

Speaker 1:

Fantastic. I mean, it's so impressive. And the other angle here that's important to touch on is one of the political commitment without getting into politics, we don't want to go there on this show is one of the political commitment without getting into politics, we don't want to go there on this show, but there is a demand, I think increasingly, from global tech players to have a strong commitment to tech hubs and tech regions. What does that mean for things like investment incentives, the approval processes, regulation, bureaucracy and other factors that might be considered as part of an investment?

Speaker 3:

You've already mentioned the 14.8 billion euros, evan, which are allocated specifically for the transformation itself, but there are also various funding programs, especially for companies in future industries. So, for example, there is the possibility to receive up to 200 million euros in investment funding directly. In addition to that, there are a number of other programs, but to list and explain them all would go beyond the limited time on this interview, unfortunately.

Speaker 2:

But regarding the approval processes, I think the Microsoft project has shown that politics and businesses indeed can work very good together. I can say that a lot is already well prepared. The open mining has freed up large areas which we, as NRV Global Business, are profiling and marketing for new settlements.

Speaker 3:

Essentially, we have everything here, from smaller sites to sites for larger developments and sites for brownfield and greenfield projects and maybe another addition we are here as a local partners, as a local partner in the nrw global business, so we provide advice on the ideal location, funding and also tax benefits. And yeah, by the way, long before and long after the settlement.

Speaker 1:

Fantastic. Well, I can't wait to catch up in person at Mobile World Congress. It sounds like you're really doing an amazing job on transforming the regional economy and the opportunities there, and I can't wait to hear more but also meet you at MWC. I'm sure you'll have a very busy and active in-person presence and we'll provide some links to where and how folks can connect with you. And also I can't wait for an in-person tour. I'd love to catch up on my favorite German Rieslings, as well as tour some of the most interesting investments that are happening globally these days. Congratulations on all this success and in leading this region into the 21st century.

Speaker 2:

Thank you, Evan. I'm looking forward to meeting you at the Mobile Work Congress in Barcelona next week.

Speaker 1:

Indeed and we'll see you there and we'll see everyone there. Thanks for meeting us there and sharing and commenting on this tremendous opportunity. Take care.

Speaker 2:

Thank you, Take care Evan.