Nvidia, Deutsche Telekom to build AI factory in Europe

Deutsche Telekom (DTEGY), together with NVIDIA (NVDA), is building one of the largest AI factories in Europe. Based in Munich, the new Industrial AI Cloud gives German companies the opportunity to further develop their AI models and applications with proprietary data. 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. Combined with Deutsche Telekom’s network and T Cloud, Deutsche Telekom and NVIDIA are creating an ecosystem for German and European companies that delivers AI sovereignty. An existing data center will be completely renovated to build the Industrial AI Cloud, together with partner Polarise, to host more than one thousand NVIDIA DGX B200 systems and NVIDIA RTX PRO Servers with up to 10,000 NVIDIA Blackwell GPUs. The computing power is 0.5 EFLOPS. The storage capacity is around 20 petabytes. The data center is connected with four 400 GB fiber optic connections. The server park has a size of several thousand square meters, is fully energy-efficient and meets the highest security and quality standards. A total of 75 kilometers of fiber optic cable will be laid to connect the GPUs and the site. The work is being carried out by robots from Agile Robots, among others. The AI data center will start operations in the first quarter of 2026. The expansion of the Munich data center to an AI factory of Deutsche Telekom is taking place independently of the EU project for the promotion of the construction of several AI gigafactories throughout Europe.