Partnership Overview

Nvidia and Deutsche Telekom have entered a €1 billion partnership to build an “AI factory” in Munich. The initiative, branded the Industrial AI Cloud, aims to boost Germany’s AI computing capacity by roughly 50% and provide a secure, sovereign environment for AI services.

Technology and Infrastructure

The data center will house more than 1,000 Nvidia DGX B200 systems and RTX Pro servers, leveraging up to 10,000 Blackwell GPUs. These resources will support AI inferencing, digital twins, and physics‑based simulation for industrial customers.

Key Partners and Roles

Deutsche Telekom will deliver the physical infrastructure. Early collaborators include Agile Robots, whose robots will install server racks, and Perplexity, which will offer in‑country AI inferencing to German users and firms. SAP will contribute its Business Technology platform and applications.

Regulatory Context and Timing

The project is designed to comply with German data‑sovereignty regulations and is distinct from the European Union’s AI gigafactory programme. Operations are expected to commence in early 2026.

Strategic Implications

Both companies view the partnership as a way to strengthen European AI capabilities and reduce reliance on foreign infrastructure. Deutsche Telekom’s CEO highlighted AI as a major opportunity to enhance products and reinforce European strengths.

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