Nvidia and Deutsche Telekom Forge €1 Billion Partnership to Establish AI Data Center in Munich
In a significant move to bolster Europe’s artificial intelligence (AI) infrastructure, Nvidia and Deutsche Telekom have announced a €1 billion ($1.15 billion) collaboration to develop an advanced AI data center in Munich, Germany. This initiative, termed the Industrial AI Cloud, is set to enhance Germany’s AI computing capabilities by 50% and is slated to commence operations in the first quarter of 2026.
The Industrial AI Cloud will be housed in a refurbished data center in Munich, equipped with over 1,000 Nvidia DGX B200 systems and RTX Pro Servers, incorporating up to 10,000 Blackwell GPUs. This substantial infrastructure aims to provide AI inferencing and related services to German enterprises, ensuring compliance with the nation’s stringent data sovereignty regulations.
Deutsche Telekom will oversee the physical infrastructure of the project, while SAP will contribute its Business Technology Platform and applications. Early collaborators include Agile Robots, whose robotic systems will assist in installing server racks at the facility, and Perplexity, which plans to utilize the data center to offer localized AI inferencing services to German users and businesses. The facility is also expected to support applications such as digital twins and physics-based simulations for industrial companies.
This partnership emerges amidst calls from the European tech sector for EU policymakers to reduce dependence on foreign infrastructure and promote indigenous alternatives. The European Union has previously committed €200 billion to establish AI gigafactories across the continent, focusing on industrial and mission-critical applications. However, funding for AI initiatives within the EU has lagged behind that of the United States, where companies like Nvidia, Microsoft, Google, and Oracle have invested heavily in building extensive data centers and related infrastructure to support AI model development and services.
Deutsche Telekom has clarified that this project is independent of the EU’s AI gigafactory initiative. Tim Höttges, CEO of Deutsche Telekom, emphasized the significance of AI in strengthening European industries, stating, Mechanical engineering and industry have made this country strong. But here, too, we are challenged. AI is a huge opportunity. It will help to improve our products and strengthen our European strengths.
The establishment of the Industrial AI Cloud is poised to position Germany as a leading hub for AI development and deployment in Europe, offering a secure and sovereign IT infrastructure for organizations ranging from large corporations to small and medium-sized enterprises and startups. This initiative underscores the strategic importance of AI in driving innovation and competitiveness within the European industrial sector.
