Key Takeaways Nvidia and Deutsche Telekom are jointly investing €1 billion to build an AI data center in Munich, Germany. The facility will feature 10,000 Nvidia Blackwell GPUs and is expected to go o...
Nvidia Corp. and Deutsche Telekom AG are preparing to announce plans for a €1 billion data center in Germany, marking one of Europe's most significant investments in artificial intelligence infrastructure as the continent seeks to establish technological sovereignty in the rapidly evolving AI sector.
Both companies will contribute funding for the $1.2 billion project, according to multiple reports.
The Munich-based facility is designed to address growing concerns about Europe's lag in AI infrastructure compared to the United States and China.
The partnership comes at a critical moment for Europe's AI ambitions.
While American tech giants like Microsoft and Google have committed hundreds of billions of dollars to AI data center development, European investments have been comparatively modest. This disparity has raised concerns among European leaders about the continent's ability to compete in the global AI race.
"Europe's technological future needs a sprint, not a stroll," said Timotheus Höttges, CEO of Deutsche Telekom AG. "We must seize the opportunities of artificial intelligence now, revolutionize our industry and secure a leading position in the global technology competition. Our economic success depends on quick decisions and collaborative innovations."
Jensen Huang, founder and CEO of Nvidia, emphasized the transformative nature of AI infrastructure for manufacturing. "In the era of AI, every manufacturer needs two factories: one for making things, and one for creating the intelligence that powers them," Huang said.
The data center will feature 10,000 Nvidia Blackwell GPUs in its first phase, including NVIDIA DGX B200 systems and NVIDIA RTX PRO Servers, along with Nvidia networking and AI software. The facility is scheduled to go online in 2027 and will be operated by Deutsche Telekom.
SAP SE, Europe's biggest software company, has been confirmed as a customer of the facility.
The announcement is expected to take place at an event in Berlin next month, with Deutsche Telekom CEO Tim Höttges, Nvidia CEO Jensen Huang, SAP CEO Christian Klein, and German Digital Minister Karsten Wildberger scheduled to attend.
While the German facility represents a substantial investment for Europe, its scale remains modest compared to some U.S. projects.
A single data center being developed in Texas by SoftBank, OpenAI, and Oracle is expected to house approximately 500,000 GPUs—50 times more than the planned German site.
The Nvidia-Deutsche Telekom partnership aligns with the European Union's broader AI development strategy. In February, the European Union announced a €200 billion plan to support AI development across the bloc, aiming to triple Europe's computing capacity over the next five to seven years.
The initiative seeks to promote the creation of AI "gigafactories"—large, energy-efficient facilities dedicated to processing and training AI models. However, progress has been slow due to regulatory and funding complexities. The bloc has yet to finalize how it will evaluate proposals or distribute funding.
Deutsche Telekom will provide secure, sovereign infrastructure and be responsible for data center operations, sales, security, and AI solutions. The company emphasized that European values such as data protection and security will be maintained, with data processed only in accordance with European standards.
The facility is described as Germany's single largest AI deployment and represents what Nvidia calls "the world's first industrial AI cloud." It will support industrial AI workloads for European manufacturers, including design, engineering, simulation, digital twins, and robotics applications.
Customers will be able to run NVIDIA CUDA-X libraries and NVIDIA Omniverse-accelerated workloads from leading software providers such as Siemens, Ansys, and Cadence.
The infrastructure is expected to benefit Germany's robust small- and medium-sized businesses, known as the Mittelstand, as well as academia, research institutions, and major enterprises.
According to a Deloitte study, data center capacity expansion is critical to Germany's competitiveness, with demand expected to triple over the next five years to 5 gigawatts.
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