BERLIN -- Google is investing (EURO)1 million (US$1.3 million) in a new facility for Internet startups in the German capital Berlin.

The city has long been a magnet for young entrepreneurs but lags behind rivals such as San Francisco and London when it comes to launching big-name sites.

Google said Tuesday that the new hub, located close to where the Berlin Wall used to run, will provide workspaces for startups and opportunities to meet investors.

Google says it doesn't plan to use the facility to pick up promising companies there just yet.

The company has been at odds recently with the German government and the country's publishers over a proposed levy on the use of web content. Google has also found Germany one of the trickiest markets for privacy regulation.