Deutsche Telekom, NVIDIA, and SAP are constructing one of Europe’s largest AI factories—a €1 billion “Industrial AI Cloud” that will deliver 0.5 exaflops of compute performance and increase Germany’s AI computing capacity by roughly 50 percent. The new facility, located in Munich, will house up to 10,000 NVIDIA Blackwell GPUs, including DGX B200 systems and RTX Pro servers, to support high-performance, sovereign AI computing for European industry.
Set to begin operations in Q1 2026, the AI factory will allow companies to train large language models, develop digital twins, and build robotics and industrial automation applications under full EU data compliance. Deutsche Telekom’s T-Systems division is providing the infrastructure and connectivity through its T Cloud, SAP is delivering its Business Technology Platform, and NVIDIA is contributing the GPU infrastructure and Omniverse software stack. Early partners include Siemens, EY, Agile Robots, Wandelbots, Quantum Systems, PhysicsX, and Perplexity AI.
The project underscores Germany’s push for AI sovereignty, with applications spanning mechanical engineering, manufacturing, logistics, and robotics. Agile Robots’ H10-W model will even assist in server installation at the Munich site. Perplexity AI plans to run inference directly within Germany to guarantee sovereign data handling. Deutsche Telekom estimates that about 20 percent of companies are already shifting critical workloads back from global hyperscalers to domestic infrastructure, reinforcing demand for local AI compute.
• Location: Munich, Germany
• Investment: €1 billion
• Hardware: Up to 10,000 NVIDIA Blackwell GPUs (DGX B200 + RTX Pro)
• Performance: 0.5 exaflops | 20 petabytes storage | 4 × 400 Gbps fiber links
• Operational start: Q1 2026
• Key partners: SAP, NVIDIA, Siemens, EY, Agile Robots, Wandelbots, Quantum Systems, PhysicsX, Perplexity AI
• Focus areas: Digital twins, LLM training, industrial automation, robotics, sovereign AI inference
Tim Höttges, CEO of Deutsche Telekom, said:
“Mechanical engineering and industry have made this country strong. AI is a huge opportunity—it will help improve our products and strengthen our European strengths. In just six months, we turn an idea into real AI computing power, Made for Germany.”
🌐 Analysis: The Industrial AI Cloud signals Europe’s determination to build sovereign AI infrastructure independent of U.S. and Chinese hyperscalers. For Deutsche Telekom, it aligns national digital policy with its T Cloud strategy. For NVIDIA, it expands its Blackwell GPU footprint into sovereign markets, echoing its partnerships with Japan’s SoftBank and France’s AI sovereign clouds. SAP’s involvement anchors enterprise-scale adoption, while the Munich deployment sets a template for future AI gigafactories across the continent.
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