NVIDIA and Deutsche Telekom Partner on €1B Industrial AI Cloud in Munich

In a press release by Deutsche Telekom, the company and NVIDIA announced a €1 billion partnership to construct one of Europe’s largest AI data centers in Munich. The project, named the Industrial AI Cloud, aims to increase Germany’s AI computing capacity by approximately 50% and is scheduled to begin operations in the first quarter of 2026.

The facility will be equipped with over 1,000 NVIDIA DGX B200 systems and RTX Pro Servers, featuring up to 10,000 Blackwell GPUs that together deliver 0.5 exaFLOPS of performance. The data center will have a storage capacity of 20 petabytes and will be linked by four 400 Gbps fiber connections. Deutsche Telekom will provide the physical infrastructure, while SAP contributes its Business Technology Platform and applications.

Early partners include Agile Robots, which will deploy its robots for installing server racks, and Perplexity, which will use the infrastructure to deliver in-country AI inference services for German enterprises. The facility will also support use cases such as digital twins, manufacturing simulations, and robotics development.

The Munich site will operate independently of the European Union’s AI gigafactory initiative. According to Deutsche Telekom, the project was developed within six months and is intended to offer secure, sovereign AI computing capacity for companies across Germany and Europe.