It becomes an almost dizzying experience to follow all of Nvidia’s latest deals and partnerships. Now, Nvidia (NVDA) and Deutsche Telekom AG (DTEGY) plan to build a $1.2 billion data center in Germany to expand the region’s capacity for AI. The project will sit near Munich and is expected to start operating in early 2026. It will use about 10,000 of Nvidia’s advanced graphics processing units to power complex AI models. According to Deutsche Telekom, the new site will increase Germany’s AI computing power by roughly 50%.
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The announcement came at an event in Berlin that included Nvidia Chief Executive Officer Jensen Huang, Deutsche Telekom CEO Tim Höttges, and leaders from SAP SE (SAP) and Deutsche Bank AG (DB). Their presence highlighted Germany’s effort to strengthen its AI capabilities and support local industry growth. SAP will provide its business technology software to help integrate AI functions into corporate systems.
Meanwhile, NVDA shares rose 2.17% on Monday to close at $206.88.
Europe’s Investment Push and Global Context
This move also fits into the European Union’s broader $215 billion plan to boost AI development across the region. The goal is to triple Europe’s computing capacity over the next few years and support new AI projects. However, the plan is still taking shape, and the process for funding and review remains slow.
By comparison, the new German facility is relatively modest in size. For example, a planned data center in Texas by SoftBank Group (SFTBY), Oracle (ORCL), and OpenAI (PC:OPAIQ) will use about 500,000 GPUs. Even so, the German project signals progress toward a stronger European AI ecosystem.
A Strategic Win for Both Companies
For Nvidia, the investment deepens its presence in Europe and positions it as a key supplier for the continent’s growing AI demand. For Deutsche Telekom, it adds a new line of business beyond telecom, focused on cloud computing and digital services. Together, the companies aim to help European firms run AI tools locally, which could improve data security and performance.
In simple terms, the new project reflects Europe’s determination to catch up with the U.S. and Asia in AI infrastructure. It also gives investors a view of how global companies like Nvidia and Deutsche Telekom are shaping the next stage of technology growth in the region.
Is Nvidia Stock a Buy?
Nvidia continues to hold the Street’s endorsement with a Strong Buy consensus rating. The average NVDA price target is $237.86, implying a 14.97% upside from the current price.
