Nvidia, Deutsche Telekom Strike €1b Partnership For A Data Center In Munich

Nvidia is playing accelerated and loose pinch its warfare thorax arsenic it looks to build connected its momentum arsenic nan main benefactor of nan AI boom.

The institution connected Tuesday signed a €1 cardinal ($1.15 billion) business pinch Deutsche Telekom to group up an “AI factory” successful Munich that intends to boost Germany’s AI computing powerfulness by 50%.

Called nan “Industrial AI Cloud,” nan task will usage much than 1,000 Nvidia DGX B200 systems and RTX Pro Servers pinch up to 10,000 Blackwell GPUs to supply AI inferencing and different services to German companies while complying pinch German information sovereignty laws.

Deutsche Telecom said early partners of nan task see Agile Robots, whose bots will beryllium utilized to instal server racks astatine nan facility, and Perplexity, which will usage nan information halfway to supply “in-country” AI inferencing to German users and companies. The telco besides outlined integer twins and physics-based simulation arsenic usage cases for business companies.

The telecom institution said it would supply nan beingness infrastructure for nan project, while SAP will supply its Business Technology level and applications.

The business comes astatine a clip erstwhile nan European tech manufacture has been calling connected EU lawmakers to trim their reliance connected overseas infrastructure and work providers, and foster take of homegrown alternatives. At nan aforesaid time, tech companies person been criticizing nan bloc’s attack to regulating AI, arguing that nan rules only service to clasp backmost innovation.

The EU earlier this twelvemonth committed €200 billion to group up “AI gigafactories” connected nan continent, focusing connected “industrial and mission-critical applications.” But backing for AI initiatives successful nan European Union has been notably little than successful nan U.S., wherever companies for illustration Nvidia, Microsoft, Google, and Oracle person pumped successful hundreds of billions to build monolithic information centers and type infrastructure to support improvement of AI models and services.

Deutsche Telekom noted that this project, expected to commencement operations successful early 2026, is abstracted from nan EU’s AI gigafactory initiative.

“Mechanical engineering and manufacture person made this state strong,” says Tim Höttges, CEO of Deutsche Telekom. “But here, too, we are challenged. AI is simply a immense opportunity. It will thief to amended our products and fortify our European strengths.”