US technology giant Nvidia and Deutsche Telekom have announced a partnership to establish a one-billion-euro industrial AI cloud centre in Germany. The facility, described as a secure and sovereign infrastructure project, is expected to begin operations in early 2026.
According to Deutsche Telekom, the “AI factory” will enable businesses across Germany and Europe to develop, train and deploy artificial intelligence for a wide range of industrial applications, including design, manufacturing and robotics. The centre will be located in Munich and powered by thousands of Nvidia’s advanced AI chips.
“Germany’s engineering and industrial strengths are legendary, and now it’s being supercharged by AI,” said Nvidia CEO Jensen Huang during the launch event in Berlin.
Deutsche Telekom, the country’s largest telecommunications provider, will deliver the physical infrastructure for the project, while German software company SAP will provide the software platforms and AI technologies needed to operate the site.
The initiative comes as Europe seeks to strengthen its position in the global AI landscape, competing with major developments in the United States and China. European policymakers and companies are also placing growing emphasis on data sovereignty, ensuring that sensitive information and citizens’ data are stored within the region instead of being managed by foreign tech corporations.
The Munich-based Nvidia and Deutsche Telekom AI cloud centre aims to bridge that gap by offering local enterprises a secure environment to harness AI innovation while maintaining strict data protection standards.
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