Deutsche Telekom is collaborating with Nvidia and Canadian private equity firm Brookfield to develop one of the European Union’s major AI “gigafactories” in North Rhine-Westphalia, Germany, CEO Tim Hoettges announced following the company’s Q2 earnings call.
While negotiations with North Rhine-Westphalia officials are ongoing, no final site decision has been made yet. The company is prioritizing locations with existing infrastructure approvals for electricity and water, aiming for a swift start once the site is confirmed. Hoettges mentioned ongoing discussions with energy provider RWE as part of the process.
Earlier this year, Deutsche Telekom had partnered with SAP, web hosting firm Ionos, and retailer Schwarz for EU data centre bids, though recent reports indicate these companies are now pursuing separate proposals. Hoettges emphasized healthy competition within Germany’s data centre market, dismissing speculation of joining other consortia.
The planned AI data centre aligns with growing efforts to boost European AI infrastructure capacity, with Deutsche Telekom positioning itself alongside key tech and investment partners to capitalize on surging AI demand.