Germany to Host Europe’s First Industrial AI Cloud with Nvidia and Deutsche Telekom Partnership

Germany is poised to become the host of Europe’s first industrial AI cloud, following a significant collaboration between Nvidia and Deutsche Telekom. This partnership aims to enhance the region’s technological sovereignty by establishing an advanced AI infrastructure. The project, referred to as an “AI factory,” is scheduled for completion by 2026 and will be equipped with approximately 10,000 of Nvidia’s latest GPUs. Deutsche Telekom will manage the construction, data-center operations, security, and AI solutions, while Nvidia will provide the necessary hardware and software to support advanced manufacturing workloads.

During a meeting with Chancellor Friedrich Merz in Berlin, Nvidia’s founder and CEO, Jensen Huang, highlighted the importance of digital production lines in the era of AI. He emphasized that modern manufacturers require not only physical production lines but also digital ones to create the intelligence that powers their operations. By hosting Europe’s first sovereign industrial AI infrastructure, the region’s industrial champions will gain access to the high-performance computing needed for design, engineering simulations, digital-twin creation, and robotics development.

Timotheus Höttges, CEO of Deutsche Telekom, stressed the urgency of the initiative, stating that Europe’s technological future requires rapid decisions and collaborative innovation to secure a leading role in the global technology race. Chancellor Merz welcomed the investment, praising Nvidia’s commitment to strengthening Germany’s innovative capacity and digital sovereignty.

In its initial phase, the AI factory will house Nvidia DGX GB200 systems and RTX PRO servers, interconnected via Nvidia’s high-speed networking and AI-optimized software stack. These resources will support workloads running on Nvidia CUDA-X libraries, along with accelerated applications from software partners such as Siemens, Ansys, Cadence, and Rescale. This initiative aligns with Nvidia’s recent emphasis on Europe as a key market for AI developments, highlighting the vast opportunities for growth in the region.

The new infrastructure promises broad access to cutting-edge simulation-first manufacturing tools for both large corporations and small and medium-sized enterprises. A flagship user of the new facility will be NEURA Robotics, a pioneer in “physical AI” and cognitive robots. The company plans to leverage the cloud’s computing power to enhance its Neuraverse platform, which enables robots to learn collaboratively across various industrial and domestic tasks. NEURA Robotics CEO David Reger believes that Europe must build its own AI backbone to maintain control over the technology driving tomorrow’s robots.

Beyond the initial 10,000-GPU installation, the partnership sets the stage for an even more ambitious “AI gigafactory” initiative. Supported by the European Union and set to launch around 2027, this follow-on program aims to deploy up to 100,000 GPUs across multiple high-performance computing centers. It will provide startups, universities, and research institutes with the accelerated computing needed to advance AI research and commercial applications. To foster an AI-savvy workforce, Nvidia is extending access to its Deep Learning Institute courses throughout Germany’s computing ecosystem, offering education and certification to engineers, developers, and data scientists.

Other European telecom operators are also advancing their own sovereign AI clouds, indicating a broader trend toward regional control over critical AI infrastructure. By pooling resources and expertise, Nvidia and Deutsche Telekom have created a powerful catalyst for Europe’s industrial digitization. The factory in Germany represents the single largest AI deployment in the country’s history and serves as the launchpad for agentic AI applications, digital twins, and robotics platforms that will reshape manufacturing.