Nvidia and Deutsche Telekom have partnered in a €1 billion deal to establish an 'AI factory' in Munich, Germany. The 'Industrial AI Cloud' data centre aims to boost Germany's AI computing capabilities by 50%. The facility will house over 1,000 Nvidia DGX B200 systems and RTX Pro Servers, incorporating up to 10,000 Blackwell GPUs. This infrastructure will enable German companies and organisations to develop, train, and deploy AI for various manufacturing applications, from design to robotics.
Deutsche Telekom will provide the physical infrastructure, while SAP will supply its Business Technology Platform and AI technologies. Several companies, including Siemens, Agile Robots, and Perplexity, are slated to utilise the data centre. Perplexity intends to offer in-country AI inferencing to German users, addressing data sovereignty concerns.
Operations are scheduled to commence in early 2026. The initiative aligns with the EU's push for digital sovereignty and aims to establish Germany as a leading AI hub. The project operates independently of the EU's broader gigafactory initiative.




