Deutsche Telekom and Nvidia announced a strategic partnership on Friday to create an artificial intelligence cloud tailored for European manufacturers, based in Germany. Nvidia will provide 10,000 graphics processing units (GPUs) to be integrated into Deutsche Telekom’s existing data centers as part of this initiative.
The project aims for implementation by 2026 and represents a critical step toward building large-scale data centers, which are key to Germany’s push to modernize its industrial sector. This move also aligns with the European Union’s broader goal to close the AI infrastructure gap with global competitors like the U.S. and China.
Nvidia CEO Jensen Huang revealed plans for the AI cloud platform in Germany earlier this week and announced Deutsche Telekom’s participation during a meeting with German Chancellor Friedrich Merz.
Merz emphasized the significance of investments in AI infrastructure for Germany’s innovation and economic future, praising Nvidia and its partners’ commitment. He described the partnership as a vital step for strengthening Germany’s digital sovereignty.
GPUs have become essential for advancing AI capabilities. Under Chancellor Merz’s leadership, Germany plans to develop large data centers supported by state subsidies covering 35% of costs, while the industry is expected to cover the remaining 65%. The government aims to secure up to 100,000 GPUs to meet growing AI demands.
Earlier this year, the European Commission unveiled a $20 billion funding plan to accelerate AI data center construction across Europe.
Deutsche Telekom recently announced collaborations with companies like SAP, web hosting firm Ionos, and retailer Schwarz to seek EU support for building large data centers in Germany.
Nvidia is also working with European AI company Mistral to develop AI computing platforms powered by 18,000 Nvidia GPUs to serve European businesses.