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

Nvidia is playing accelerated and escaped with its warfare thorax arsenic it looks to physique connected its momentum arsenic the main benefactor of the AI boom.

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

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

Deutsche Telecom said aboriginal partners of the task see Agile Robots, whose bots volition beryllium utilized to instal server racks astatine the facility, and Perplexity, which volition usage the 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 concern companies.

The telecom institution said it would supply the carnal infrastructure for the project, portion SAP volition supply its Business Technology level and applications.

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

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

Deutsche Telekom noted that this project, expected to commencement operations successful aboriginal 2026, is abstracted from the 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 volition assistance to amended our products and fortify our European strengths.”