Nvidia has signed a €1 billion ($1.15 billion) partnership with Deutsche Telekom to establish an AI factory in Munich, expanding Germany’s AI computing power by 50%. The facility, named the Industrial AI Cloud, will deploy more than 1,000 Nvidia DGX B200 systems and RTX Pro Servers with up to 10,000 Blackwell GPUs, enabling AI inferencing and industrial applications under German data sovereignty requirements.
Deutsche Telekom will supply physical infrastructure, while SAP contributes its Business Technology platform and applications. Early partners include Agile Robots, which will automate server installation, and Perplexity, which will run “in-country” AI inferencing for German users. Additional use cases include digital twins and simulation for manufacturing companies.
The partnership arrives as European leaders push for reduced reliance on foreign technology and stronger support for domestic infrastructure. Funding challenges persist across the region despite a €200 billion EU commitment to develop AI gigafactories. Deutsche Telekom emphasized the Munich project, set to begin operations in early 2026, is independent of the EU initiative and aims to strengthen Europe’s industrial competitiveness through AI-driven innovation.
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