AI Sovereignty Telekom Launches One of Europe's Largest AI Factories with Nvidia

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Deutsche Telekom (Germany’s leading telecom operator) and Nvidia are creating one of Europe's largest AI factories with the new Industrial AI Cloud in Munich. It offers companies secure computing power under European standards.

As early as the first quarter of 2026, companies will be able to book and use the computing power of the AI factory as needed. The construction of the factory will increase AI computing power in Germany by around 50 percent. In combination with Telekom's network and the T Cloud, Telekom and Nvidia are creating an ecosystem for German and European companies that offers AI sovereignty.

Mechanical engineering and industry have made this country strong. But even here, we are being challenged. AI is a huge opportunity. It will help improve our products and strengthen our European strengths. In just six months, we are turning an idea into real AI computing power, Made for Germany.

Tim Höttges, CEO of Deutsche Telekom

"But even here, we are being challenged. AI is a huge opportunity. It will help improve our products and strengthen our European strengths. In just six months, we are turning an idea into real AI computing power, Made for Germany," says Tim Höttges, CEO of Deutsche Telekom.

Germany's strength in engineering and industry is legendary and is now being further enhanced by AI. With the world's first Industrial AI Cloud and one of the largest GPU deployments in Germany, we are bringing Nvidia AI and robotics here to usher in a new era of industrial transformation.

Jensen Huang, Founder and CEO of Nvidia

Due to the geopolitical situation, around 20 percent of companies relocated their business-critical and sensitive data from the cloud back to local storage during the 2024/25 period. The demand from large enterprises, SMEs, and start-ups for sovereign and secure AI computing capacities under European regulations is therefore significant, for example in AI applications in mechanical engineering, manufacturing, and logistics.

Diverse Application Scenarios, Enormous Productivity Gain

The new Industrial AI Cloud meets the high and diverse demands of the industry, with a range of application scenarios. Several renowned partners and customers have already expressed their interest and clear willingness to use the AI factory for their own purposes.

For example, it enables developers to create digital 3D twins of real factories by integrating Nvidia Omniverse libraries for virtual planning, simulation, testing, and improvement of factory designs before they are built in reality. This increases efficiency and leads to significant productivity gains. For instance, cars and airplanes can be tested in digital wind tunnels, and virtual crash tests will also become possible.

Another application area is the development of robots through physically accurate, simulation-based learning and validation. One of the first users of the Industrial AI Cloud is Agile Robots. The robots are used, for example, in production processes of automotive manufacturers and electronics producers. They carry out mechanical assembly and polishing tasks with the highest precision and adjust their movements in real-time. The H10-W robot from Agile Robots is also used for the installation of server cabinets at the Munich site.

Large Language Models (LLMs) can also be developed and trained at a high level. For this purpose, Telekom's partner Perplexity will, for example, utilize the Industrial AI Cloud. True AI sovereignty requires the inference layer to generate answers and intelligence within Germany. Through its partnership with Deutsche Telekom, Perplexity will use the Industrial AI Cloud to provide secure AI inference locally for German users and companies.

Telekom offers customers services related to the migration to the Industrial AI Cloud. This includes everything from connection and migration to the introduction and integration of AI solutions and applications for new customers, as well as the corresponding security solutions and process integration.

SAP And Telekom Join Forces for the Industrial AI Cloud

SAP and Deutsche Telekom will jointly create a secure, sovereign, and powerful digital infrastructure for public institutions and security with the Industrial AI Cloud. Telekom will provide the physical infrastructure, while SAP will supply the SAP Business Technology Platform and applications—including advanced AI technologies. In the future, all digital solutions for these target groups will be developed on the joint "Germany Stack." This guarantees the highest standards of data protection, security, and reliability. This partnership represents digital sovereignty "Made in Germany."

Data, Numbers, Facts

An existing data center is being completely renovated to build the Industrial AI Cloud in collaboration with partner Polarise, hosting more than a thousand Nvidia DGX-B200 systems and Nvidia RTX PRO servers with up to 10,000 Nvidia Blackwell.

The computing power amounts to 0.5 EFLOPS (Exa Flops, Floating Point Operations per Second). The storage capacity is approximately 20 petabytes. The data center is connected with four 400 GB fiber optic links. The server park spans several thousand square meters, is fully energy-efficient, and meets the highest security and quality standards. A total of 47 miles of fiber optic cables will be installed to connect the GPUs and the site. The work will be handled, among others, by robots from Agile Robots. The AI data center is set to become operational in the first quarter of 2026.

The expansion of the Munich data center into an AI factory by Deutsche Telekom is independent of the EU project promoting the construction of several AI gigafactories across Europe. The collaboration between Telekom and Nvidia, along with other partners, is a 'speedboat' for companies that want to develop and use artificial intelligence today.

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