Deutsche Telekom and NVIDIA have announced a €1 billion ($1.2 billion) partnership to build and operate a dedicated AI cloud for industrial and enterprise applications, scheduled to go live in the first quarter of 2026. The project, unveiled in Munich, marks one of Europe’s largest private cloud investments focused on artificial intelligence.
The AI cloud will operate from a refurbished Deutsche Telekom data center in Munich, equipped with up to 10,000 NVIDIA Blackwell GPUs – the company’s most powerful graphics processors to date. The facility will run on a software stack from SAP, Germany’s enterprise software leader, providing a robust foundation for developing and deploying AI applications across industries.
“Companies will be able to book computing power as needed to develop industrial AI applications,” said Tim Hoettges, CEO of Deutsche Telekom, at the press conference. He added that the cloud infrastructure would also serve public sector and defense organizations, providing scalable access to AI computing resources.
German Minister for Digital Transformation Karsten Wilderberger highlighted the project as a cornerstone of the government’s “Made for Germany” initiative, which aims to strengthen the country’s digital competitiveness. “We’ve taken more than 100 companies on board, and investments to the tune of €750 billion have been promised,” Wilderberger said.
If adoption grows as expected, Deutsche Telekom indicated it is ready to double its investment in the platform. “If we learn that the industry and public services are using this infrastructure, Deutsche Telekom is willing to double down on these investments,” Hoettges noted.
Jensen Huang, CEO of NVIDIA, said the partnership underscores the company’s long-term commitment to Europe. “We are excited to expand our collaboration with Deutsche Telekom to accelerate AI innovation in Germany and beyond,” Huang said, adding that NVIDIA would also consider increasing its investments in the country.
The AI cloud will serve a broad range of use cases, including factory automation, AI-powered robotics, and large language model training. Early adopters include Agile Robots, a Germany-based robotics company whose systems are helping construct the Munich data center itself. “We see this as a game-changer for industrial automation,” said Zhaopeng Chen, CEO of Agile Robots.
Another early user, Quantum Systems, a German drone manufacturer, said it will use the cloud’s compute power to develop AI-driven drones for surveillance and defense, including both air- and sea-based models.
The partnership between Deutsche Telekom, NVIDIA, and SAP represents a significant step toward building a sovereign AI infrastructure within Europe – one that combines local cloud operations, European software, and global chip expertise. Analysts say the initiative could help reduce dependence on U.S.-based hyperscalers while strengthening Germany’s position in the global AI race.
With billions in investment and the backing of Germany’s digital ministry, the Munich-based AI cloud is expected to become a central hub for industrial innovation, training advanced models and powering intelligent systems across manufacturing, logistics, and public services.