Nvidia, Deutsche Telekom strike €1B partnership for a data center in Munich

Nvidia and Deutsche Telekom have announced a €1 billion partnership to build a new data center in Munich, dubbed the “Industrial AI Cloud.” This facility will deploy over 1,000 Nvidia DGX B200 systems and RTX Pro Servers equipped with up to 10,000 Blackwell GPUs to deliver AI inferencing and related services to German companies while adhering to German data sovereignty laws. Early collaborators include Agile Robots, which will assist in server rack installation, and Perplexity, which plans to offer localized AI inferencing services. Deutsche Telekom will provide the physical infrastructure, while SAP will contribute its Business Technology platform and applications, targeting industrial use cases such as digital twins and physics-based simulations. The project aligns with broader European efforts to reduce dependence on foreign technology infrastructure and promote domestic AI capabilities, although funding for AI in the EU remains significantly lower than in the U.S. Unlike the EU’s AI gigafactory initiative, this data center is a separate endeavor expected to become operational in early 2026