NVIDIA has announced a major partnership with Deutsche Telekom to build Europe’s first industrial AI cloud in Germany. This AI infrastructure, referred to as an “AI factory”, is designed to support manufacturing innovation by providing the computational backbone for applications such as engineering, simulation, digital twins and robotics.
The announcement was made during NVIDIA CEO Jensen Huang’s European tour, which included meetings with German Chancellor Friedrich Merz. The project marks Germany’s largest single AI deployment to date and is expected to significantly accelerate the region’s capabilities in sovereign AI development.
Supporting industrial innovation
The AI factory will be operated by Deutsche Telekom and powered by 10,000 NVIDIA Blackwell GPUs in its initial phase. These will include NVIDIA DGX B200 systems and RTX PRO Servers, alongside NVIDIA’s networking and AI software. The infrastructure aims to provide Europe’s industrial ecosystem — from large enterprises to research institutions — with access to accelerated computing.
Jensen Huang commented, “In the era of AI, every manufacturer needs two factories: one for making things, and one for creating the intelligence that powers them. By building Europe’s first industrial AI infrastructure, we’re enabling the region’s leading industrial companies to advance simulation-first, AI-driven manufacturing.”
Timotheus Höttges, CEO of Deutsche Telekom, added, “Europe’s technological future needs a sprint, not a stroll. We must seize the opportunities of artificial intelligence now, revolutionise our industry and secure a leading position in the global technology competition.”
Real-world applications and strategic goals
Among the first to benefit from the new AI infrastructure is NEURA Robotics, a Germany-based pioneer in physical AI and cognitive robotics. The company plans to use the computing resources to support its training centres for cognitive robots, helping to scale its Neuraverse platform — a connected ecosystem where robots learn from one another across different use cases, from welding to domestic tasks.
“Physical AI is the electricity of the future — it will power every machine on the planet,” said David Reger, founder and CEO of NEURA Robotics. “Through this initiative, we’re helping build the sovereign infrastructure Europe needs to lead in intelligent robotics and stay in control of its future.”
A recent Deloitte study highlighted the critical importance of AI development and expanded data centre capacity for Germany’s long-term competitiveness. Demand for such capacity is expected to triple within five years, reaching up to 5 gigawatts.
A step towards Europe’s AI gigafactories
The new AI cloud is also a stepping stone toward Germany’s broader AI gigafactory ambitions. Backed by the European Union, the German government and industry partners, the gigafactory initiative aims to build a 100,000-GPU infrastructure by 2027. The project will support enterprises, startups, researchers and universities with high-performance computing access through a network of AI and HPC centres.
Deutsche Telekom’s AI factory will enable customers to run workloads using NVIDIA’s CUDA-X libraries and software tools such as RTX and Omniverse. Industry software partners include Siemens, Ansys, Cadence and Rescale.
Germany’s small and medium-sized enterprises, known as the Mittelstand, along with academic and research institutions, are also expected to benefit from the infrastructure. As of March, around 900 German startups in the NVIDIA Inception programme will be eligible to use the AI cloud.
In addition, NVIDIA’s Deep Learning Institute will continue offering training courses and certification programmes to help professionals and students across Germany upskill in AI.
Further AI infrastructure efforts are underway across Europe, with other telecoms operators also building regional capabilities to support agentic AI application development.
