Deutsche Telekom and NVIDIA have announced a €1 billion partnership to build one of the largest AI factories in Europe. The Industrial AI Cloud, based in Munich, aims to power the next generation of industrial innovation by providing German companies with sovereign access to cutting-edge artificial intelligence computing power.
Equipped with up to 10,000 NVIDIA Blackwell GPUs, the facility will deliver an unprecedented 0.5 exaFLOPS of computing performance—boosting Germany’s overall AI capacity by nearly 50%. Construction is already underway, and operations are slated to begin in early 2026.
“Mechanical engineering and industry have made this country strong,” said Tim Höttges, CEO of Deutsche Telekom. “AI is a huge opportunity. It will help improve our products and strengthen our European strengths. In just six months, we turn an idea into real AI computing power—Made for Germany.”
Driving European AI Sovereignty
The Industrial AI Cloud is designed to help German and European businesses train, test, and deploy AI models using proprietary data, while ensuring compliance with European data protection and sovereignty standards. With geopolitical shifts leading many organizations to repatriate sensitive data, the project meets a growing demand for secure, in-country AI infrastructure.
“This initiative marks the beginning of a new era of Germany’s industrial transformation,” said Jensen Huang, founder and CEO of NVIDIA. “Germany’s engineering and industrial strengths are legendary, and now they’re being supercharged by AI.”
The cloud will be integrated with Deutsche Telekom’s T Cloud and network infrastructure, creating a full ecosystem that allows enterprises to seamlessly adopt AI solutions. SAP will provide the Deutschland-Stack, a sovereign technology platform built on its Business Technology Platform to ensure secure integration, high performance, and regulatory compliance.
Transforming Industry Through AI
The new AI factory will support a wide range of industrial applications, including digital twins, robotics, and large language model (LLM) development. With NVIDIA Omniverse libraries, companies can create virtual replicas of factories to simulate production lines, test designs, and optimize processes before real-world implementation. This capability offers massive productivity gains, enabling industries like automotive and aerospace to conduct digital wind tunnel or crash simulations.
Agile Robots, one of the project’s early adopters, will use the platform to enhance precision robotics for automotive and electronics manufacturing. Its H10-W robots will even participate in the construction of the Munich data center itself, providing an example of automation in action.
On the software front, AI firm Perplexity will use the Industrial AI Cloud to train and serve large language models within Germany, ensuring that AI inference and data processing remain fully sovereign.
Building the Future of AI Infrastructure
The Munich site will be completely renovated to host over 1,000 NVIDIA DGX B200 systems and NVIDIA RTX PRO Servers, supported by 20 petabytes of storage and 75 kilometers of fiber optic cable. The facility will meet the highest standards of energy efficiency, security, and reliability, connected through four 400 GB fiber-optic links.
Thus, by combining world-class technology with European data sovereignty, Deutsche Telekom and NVIDIA are laying the groundwork for a new era of industrial AI—one that strengthens economic resilience, drives innovation, and secures Europe’s place in the global AI race.
What This Means for ERP Insiders
Seamless SAP integration aligns with EU data protection standards. The Industrial AI Cloud’s integration with SAP’s Deutschland-Stack gives ERP users a secure, sovereign platform for adopting artificial intelligence. Built on SAP’s Business Technology Platform, it allows enterprises to connect their existing ERP systems directly to advanced AI capabilities without moving data outside the EU. This ensures full compliance with European data protection and sovereignty standards while streamlining access to powerful AI tools. For ERP users, it means faster, safer innovation through a cloud ecosystem designed for interoperability and regulatory trust.
AI-enhanced operations give organizations the real-time advantage. ERP users can leverage the Industrial AI Cloud to transform core business processes through automation, predictive analytics, and digital twin technology. By linking ERP data—such as supply chain metrics, inventory, and production workflows—to NVIDIA’s high-performance computing power, organizations can simulate, forecast, and optimize operations in real time. This capability enables more efficient resource management, reduced downtime, and data-driven decision-making. Industries like manufacturing, logistics, and engineering can achieve greater agility and performance by embedding AI insights directly into their ERP workflows.
Organizations will gain secure, scalable performance with this partnership. Equipped with up to 10,000 NVIDIA Blackwell GPUs delivering 0.5 exaFLOPS of power, the Industrial AI Cloud offers ERP users exceptional scalability for training and deploying AI models. This infrastructure provides the computational strength needed for complex enterprise applications while keeping sensitive data within Germany’s borders. ERP users benefit from a high-performance environment that upholds GDPR compliance, cybersecurity standards, and operational resilience. By combining cutting-edge AI with data sovereignty, the platform empowers companies to innovate confidently without compromising privacy or control.
