Nvidia is aggressively investing its resources to build on its momentum as the primary beneficiary of the AI boom. The company recently signed a one billion euro partnership with Deutsche Telekom to establish an AI factory in Munich. This project aims to increase Germany’s AI computing power by fifty percent.
The initiative, called the Industrial AI Cloud, will utilize more than one thousand Nvidia DGX B200 systems and RTX Pro Servers equipped with up to ten thousand Blackwell GPUs. This infrastructure will provide AI inferencing and other services to German companies while fully complying with German data sovereignty laws.
Deutsche Telekom announced that early partners for the project include Agile Robots, whose bots will be used to install server racks at the facility. Another partner, Perplexity, will use the data center to provide in-country AI inferencing for German users and companies. The telecom company also highlighted digital twins and physics-based simulation as key use cases for industrial firms.
Deutsche Telekom will provide the physical infrastructure for the project, while SAP will contribute its Business Technology platform and applications.
This partnership emerges as the European tech industry has been urging EU lawmakers to reduce reliance on foreign infrastructure and service providers and to foster the adoption of homegrown alternatives. Concurrently, tech companies have criticized the bloc’s approach to regulating AI, arguing that the rules hinder innovation.
Earlier this year, the EU committed two hundred billion euros to establish AI gigafactories across the continent, with a focus on industrial and mission-critical applications. However, funding for AI initiatives in the European Union has been significantly lower than in the United States, where companies like Nvidia, Microsoft, Google, and Oracle have invested hundreds of billions to build massive data centers and supporting infrastructure.
Deutsche Telekom clarified that this new project, which is expected to begin operations in early 2026, is separate from the EU’s AI gigafactory initiative.
Tim Höttges, CEO of Deutsche Telekom, stated that mechanical engineering and industry have made Germany strong, but the country now faces new challenges. He emphasized that AI is a huge opportunity that will help improve products and strengthen European advantages.