Nvidia and Deutsche Telekom have announced a €1 billion ($1.15 billion) partnership to establish a large-scale AI factory in Munich, aimed at boosting Germany’s AI computing capacity by 50%. The project, named the Industrial AI Cloud, will deploy more than 1,000 Nvidia DGX B200 systems and RTX Pro Servers equipped with up to 10,000 Blackwell GPUs to power industrial-grade AI inferencing, simulation, and digital twin applications in full compliance with German data sovereignty laws.
Deutsche Telekom will supply the physical infrastructure, with SAP contributing its Business Technology Platform and enterprise applications. Early collaborators include Agile Robots, supporting installation automation, and Perplexity, providing in-country AI services.
The initiative underscores Europe’s growing push for technological independence, arriving as the European Unionaccelerates its own €200 billion investment in AI infrastructure. Operations for the Industrial AI Cloud are scheduled to begin in early 2026.
Featured image: Credit: Deutsche Telekom
