What happened
Nvidia and Deutsche Telekom established a –1 billion 'AI factory' in Munich, Germany, named the 'Industrial AI Cloud' data centre. This facility, operational early 2026, will house over 1,000 Nvidia DGX B200 systems and RTX Pro Servers, incorporating up to 10,000 Blackwell GPUs, boosting Germany's AI computing capabilities by 50%. Deutsche Telekom provides physical infrastructure, while SAP supplies its Business Technology Platform. This infrastructure enables German companies, including Siemens and Perplexity, to develop, train, and deploy AI for manufacturing, with Perplexity offering in-country AI inferencing to address data sovereignty.
Why it matters
This initiative introduces a significant operational dependency on a centralised 'Industrial AI Cloud' for advanced AI development and deployment within Germany. While addressing data sovereignty through in-country inferencing, it concentrates the operational burden of maintaining these assurances within the factory's specific infrastructure. This increases due diligence requirements for procurement and platform operators to align their AI strategies with the capabilities and operational parameters of this specific Nvidia and SAP-powered environment, potentially creating a control gap for custom or off-platform AI solutions.
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