Deutsche Telekom has announced a partnership with NVIDIA to build one of the largest AI factories in Europe. The new facility, called the Industrial AI Cloud, will be located in Munich and is expected to increase Germany’s AI computing power by about 50 percent. The project will use up to 10,000 NVIDIA Blackwell GPUs, resulting in a supercomputer capable of 0.5 exaflops of performance.
The initiative aims to provide German companies with the ability to develop and operate AI models using their own data while complying with European regulations. The service is scheduled to be available for businesses in the first quarter of 2026.
Tim Höttges, CEO of Deutsche Telekom, stated: “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. In just six months, we turn an idea into real AI computing power, Made for Germany.”
Jensen Huang, founder and CEO of NVIDIA, said: “Germany’s engineering and industrial strengths are legendary, and now it’s being supercharged by AI. With the world’s first Industrial AI Cloud and one of Germany’s largest GPU deployments, we’re bringing NVIDIA AI and robotics to start a new era of Germany’s industrial transformation.”
With changing geopolitical conditions leading more companies to keep sensitive data on local servers rather than in global clouds, there is increased demand for secure AI infrastructure that meets European standards—especially for industries such as mechanical engineering and logistics.
The Industrial AI Cloud is designed for various applications across sectors. Developers can use NVIDIA Omniverse libraries within the platform to create digital twins of factories for virtual planning and testing before construction begins. This allows manufacturers in industries like automotive or aerospace to conduct digital wind tunnel tests or crash simulations virtually.
Robotics development is another focus area; Agile Robots’ systems will support production tasks at both customer sites and during the installation process at the Munich facility itself.
Large Language Models (LLMs) can also be trained on this infrastructure. Perplexity—a Deutsche Telekom partner—plans to use the cloud for secure language model inference within Germany so that user queries remain inside national borders.
Deutsche Telekom will assist customers with migrating operations onto the new platform—including security integration—and SAP will contribute its Business Technology Platform as part of a joint “Deutschland-Stack.” This cooperation aims to ensure high levels of data protection and reliability for public institutions using these services.
The facility involves renovating an existing data center together with Polarise as a partner; it will house over 1,000 NVIDIA DGX B200 systems along with RTX PRO Servers on several thousand square meters. The site features around 20 petabytes of storage capacity connected by four fiber optic lines each supporting 400 GB speeds; approximately 75 kilometers of fiber optic cable are being installed.
This expansion operates independently from broader EU efforts promoting multiple large-scale AI facilities across Europe but positions Deutsche Telekom’s Munich center as an immediate resource for companies pursuing artificial intelligence projects.
