Deutsche Telekom opens AI factory in Munich

Deutsche Telekom has officially opened its Industrial AI Cloud in Munich, Germany. The facility, developed with NVIDIA and data center partner Polarise, is positioned as one of Europe's largest AI factories and is intended to bolster the continent's digital sovereignty.

The AI factory will deliver high-performance, sovereign computing power for artificial intelligence applications to businesses, research institutions, and the public sector across Germany and Europe. Located in Munich's Tucherpark, the AI hub is already operating at over a third of its capacity.

Companies like Agile Robots, specializing in AI and robotics, and PhysicsX, focused on technical simulations, are among the initial users. Deutsche Telekom CEO Tim Höttges stated the investment supports business models and sovereignty in Europe, while German Finance Minister Lars Klingbeil highlighted its importance for technological leadership.

The infrastructure is built on nearly 10,000 NVIDIA Blackwell GPUs, offering up to 0.5 ExaFLOPS of computing power. Deutsche Telekom emphasizes that the factory operates under strict data protection and security standards on German soil. It also forms the basis for the "Deutschland stack," a joint initiative with SAP combining infrastructure, platform, and business applications for cloud transformation.