- Deutsche Telekom and Nvidia plan to build the first industrial AI cloud in Germany by 2026, using 10,000 chips and targeting manufacturing use cases.
- The project supports Europe’s drive for digital sovereignty but raises questions over chip supply, infrastructure scale, and implementation.
What happened: Deutsche Telekom and Nvidia to build Germany’s first industrial AI cloud
Deutsche Telekom and Nvidia have announced plans to build Europe’s first industrial AI cloud in Germany, specifically designed to support manufacturers. Nvidia will supply 10,000 AI chips, while Deutsche Telekom will manage data centres, infrastructure, operations, sales, security, and AI services. The project is scheduled for completion by 2026.
The announcement followed a meeting between Nvidia’s CEO Jensen Huang and German Chancellor Friedrich Merz. Merz described the initiative as a strategic move for Germany’s digital sovereignty and economic competitiveness.
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Why it’s important
This move signals a shift towards sovereign AI infrastructure in Europe. By hosting AI resources locally, Germany aims to reduce reliance on U.S. cloud providers and assert control over critical digital assets. The facility will support industrial applications—including simulation, robotics, and manufacturing—enhancing regional autonomy in next-generation computing.
However, challenges remain around securing sufficient chip supplies, energy, and finding suitable sites—issues that other EU-backed AI “gigafactories” are also addressing. The effectiveness of this model will depend on how well Deutsche Telekom and Nvidia can scale the service and integrate it with Europe’s industrial base.
