Nvidia and Deutsche Telekom are joining forces to launch a €1 billion data centre in Germany, marking one of Europe’s most ambitious tech infrastructure projects. The Munich-based facility will cater to growing demand for AI computing power, with SAP already lined up as a major customer.
The partnership underscores a shared goal to build a resilient, Europe-first AI ecosystem that reduces reliance on US and Asian data infrastructure.
Europe’s response to the global AI infrastructure race
For months, European leaders and industry giants have expressed concern about the continent’s lag in AI infrastructure compared to the US and China. In America, companies like Microsoft and Google are pouring hundreds of billions into AI data centres. In contrast, Europe’s investments have been modest. Nvidia’s CEO Jensen Huang has openly called out Europe’s slow progress, stressing the need for faster development to keep data local and ensure competitiveness.
Although significant, the German data centre’s scale is smaller than some of the world’s mega projects. The facility will host around 10,000 Nvidia GPUs, a sharp contrast to the 500,000 GPUs planned for a single data centre in Texas by SoftBank, OpenAI, and Oracle.
Laying the groundwork for Europe’s AI ambitions
The European Union has pledged €200 billion to expand its AI capacity over the next decade, aiming to triple computing power within seven years. The Nvidia-Deutsche Telekom initiative fits neatly into this broader agenda, setting a precedent for public-private collaboration in next-generation computing infrastructure.
Deutsche Telekom has already engaged in discussions with other firms about building additional AI gigafactories, though progress has been slow due to regulatory and funding complexities.
The project announcement is expected next month in Berlin with Nvidia’s Jensen Huang, Deutsche Telekom’s Tim Höttges, SAP’s Christian Klein, and German Digital Minister Karsten Wildberger is likely to mark a turning point. The venture represents Europe’s determination to secure a stronger foothold in the global AI landscape.
