Germany is set to host Europe’s first industrial AI cloud

Germany is set to host Europe’s first industrial AI cloud after Nvidia and Deutsche Telekom announced a landmark collaboration designed to bolster the region’s technological sovereignty.

The two companies plan to complete the facility, dubbed an “AI factory,” by 2026 at the latest, equipping it with some 10,000 of NVIDIA’s latest GPUs. Deutsche Telekom will oversee construction, data‑center operations, security and AI solutions, while NVIDIA provides the hardware and software required to power advanced manufacturing workloads.

The factory will house some Nvidia servers

During a meeting with Chancellor Friedrich Merz in Berlin, Nvidia’s founder and CEO, Jensen Huang, emphasized that modern manufacturers need not only physical production lines but also digital ones.

“In the era of AI, every manufacturer needs two factories: one for making things, and one for creating the intelligence that powers them.”

Huang.

Through hosting Europe’s first sovereign industrial AI infrastructure, Huang added, the region’s industrial champions will have the high‑performance computing needed to drive design, engineering simulations, digital‑twin creation, and robotics development.

Timotheus Höttges, CEO of Deutsche Telekom, underlined the urgency of the initiative, remarking that “Europe’s technological future needs a sprint, not a stroll.”

He argued that rapid decisions and collaborative innovation are vital if Europe is to secure a leading role in the global technology race. Chancellor Merz, for his part, welcomed the investment as a major step towards Germany’s digital sovereignty, praising Nvidia’s commitment to strengthening the country’s innovative capacity.

In its inaugural phase, the AI factory will house Nvidia DGX GB200 systems and RTX PRO servers, all interconnected via Nvidia’s high‑speed networking and AI‑optimized software stack. These resources will support workloads running on Nvidia CUDA‑X libraries, plus accelerated applications from software partners such as Siemens, Ansys, Cadence, and Rescale.

This initiative comes as the Nvidia boss recently highlighted the importance of Europe as a market for AI developments. Speaking at the GTC event in France, Huang indicated that the bloc presented vast opportunities for growth.

Start-ups in Europe are set to benefit from the initiative

From large corporations to the famed German Mittelstand of small and medium‑sized enterprises, the new infrastructure promises broad access to cutting‑edge simulation‑first manufacturing tools.

A flagship user of the new facility will be NEURA Robotics, a pioneer in “physical AI” and cognitive robots. The company plans to power its Neuraverse platform, which enables robots to learn collaboratively across a spectrum of industrial and domestic tasks, using the cloud’s computing might.

“Physical AI is the electricity of the future; it will power every machine on the planet.”

Neura Robotics CEO David Reger.

He believes that Europe must build its own AI backbone to maintain control over the technology driving tomorrow’s robots.

Beyond the first 10,000‑GPU installation, the partnership lays the groundwork 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 they need to advance AI research and commercial applications.

To nurture an AI‑savvy workforce, Nvidia is also extending access to its Deep Learning Institute courses throughout Germany’s computing ecosystem, offering education and certification to engineers, developers, and data scientists. Meanwhile, other European telecom operators are moving forward with their own sovereign AI clouds, signaling a broader trend toward regional control over critical AI infrastructure.

Through pooling resources and expertise, Nvidia and Deutsche Telekom have created a powerful catalyst for Europe’s industrial digitization. As Huang observed, 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.

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