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Germany wants to launch one of Europe’s largest AI factories, positioning the country and the European Union as a major player among sovereign nations. artificial intelligence(AI).
It is named “Industrial AI Cloud” and was developed by Deutsche Telekom. Nvidia It was unveiled in Munich on Wednesday after around six months of construction in collaboration with data center partner Polarise.
The facility is designed to provide high-performance AI computing to businesses, researchers, and public institutions while keeping data and operations under European jurisdiction.
Telekom CEO Tim Höttges characterized the project as a test of European ambitions, saying: “We are investing in AI, and in Germany and Europe as a base of operations…we are proving here that Europe can deliver on AI.”
This AI factory is equipped with approximately 10,000 NVIDIA Blackwell GPUs, delivering up to 0.5 exaFLOPS of computing power. Telekom says this is enough power for all 450 million EU citizens to use the AI assistant at the same time.
Importantly, this infrastructure operates under strict German and EU data protection rules, a key pillar of what policymakers call digital sovereignty.
Germany’s Vice President and Finance Minister Lars Klingbeil said the project shows that private investment is aligned with political ambitions, adding that “technological leadership must be at the core of Germany’s future business model” and that the factory “strengthens our digital sovereignty.”
The project also focuses on the so-called “Deutschland stack” developed with SAP, which integrates cloud infrastructure, business software and AI tools into a single platform for enterprises and public institutions.
At the heart of this effort are industrial use cases. German high-tech company Siemens is integrating part of its SIMCenter simulation portfolio into its AI cloud, and a total of around 10 companies have already joined the new AI system.
Siemens executive Cedric Neike said the setup “significantly reduces simulation times for customers,” adding: “This is not a future promise, it is already a reality.”
The factory also aims to be environmentally sustainable. It is planned to run entirely on renewable energy, use river water for cooling, and return waste heat to the surrounding Munich area.
Industrial AI Cloud is now open to industry, startups, research institutions, and public institutions.