In a landmark collaboration set to accelerate European technological sovereignty, Germany and NVIDIA, in partnership with Deutsche Telekom, are developing Europe’s first industrial AI cloud. This ambitious project, dubbed an “AI factory,” will provide critical computational power to revolutionize the manufacturing sector across the continent.
The initiative follows a high-profile meeting between NVIDIA CEO Jensen Huang and German Chancellor Friedrich Merz, underscoring the strategic importance of this endeavor. Deutsche Telekom will operate the AI factory, focusing on Germany’s robust industrial heritage to deliver advanced cloud computing resources tailored for manufacturing, robotics, and digital simulation.
“In the era of AI, every manufacturer needs two factories: one for making things, and one for creating the intelligence that powers them,” stated Jensen Huang, CEO of NVIDIA. “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, echoed this urgency: “Europe’s technological future needs a sprint, not a stroll. We must seize the opportunities of artificial intelligence now, revolutionize our industry, and secure a leading position in the global technology competition.”
The initial phase of the project will deploy 10,000 NVIDIA Blackwell GPUs, making it Germany’s largest AI deployment to date. This significant investment highlights Germany’s commitment to becoming a leader in the global AI transformation. A recent Deloitte study emphasized the critical need for expanded data center capacity to support Germany’s future competitiveness in AI, with demand projected to triple within five years.
Early adopters like NEURA Robotics, a German firm specializing in cognitive robotics, will leverage this infrastructure to power its Neuraverse – a networked system enabling robots to learn collectively and share skills, from precision welding to household tasks.
The project is designed to benefit not only large industrial corporations but also Germany’s vital Mittelstand – the network of specialized small and medium-sized businesses. By democratizing access to cutting-edge AI resources, the initiative aims to bolster their competitive edge. Academic institutions and the approximately 900 German startups in NVIDIA’s Inception program will also gain access, fostering widespread innovation.
This industrial AI cloud is a foundational step towards an even larger vision: Europe’s AI gigafactory, a 100,000-GPU powered initiative slated for 2027, backed by the EU and Germany. This broader effort signifies Europe’s strong determination to establish its own robust technological future and reduce reliance on external AI capabilities.
