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Deutsche Telekom Teams Up with Nvidia and Brookfield to Build AI Data Centre in Germany

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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.

France Secures 110 Billion Euros in AI Investment Pledges at Summit

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French President Emmanuel Macron revealed on Monday that a total of 109 billion euros ($112 billion) in investment pledges have been made to boost France’s artificial intelligence (AI) sector over the coming years. The announcements were made during the Paris AI summit and include notable pledges from various global investors.

Among the major commitments is a 20 billion euro pledge from Canadian investment firm Brookfield, directed toward AI projects in France, as well as funding from the United Arab Emirates potentially reaching up to 50 billion euros in the future.

Here are some key pledges and investments:

  • Amazon: The U.S. retail giant pledged over 1.2 billion euros at the 2023 Choose France summit, contributing to a broader 6 billion euro investment plan to develop cloud infrastructure in France by 2031.

  • Apollo Global Management: The alternative asset manager has committed an initial tranche of funding for AI-related energy investments, totaling $5 billion.

  • Digital Realty: The real estate investment trust, which focuses on managed data centers, plans to expand its data center presence in Paris and Marseille, with investments potentially reaching 6 billion euros.

  • Equinix: The data center firm has pledged 630 million euros as part of a broader 750 million euro investment to establish 10 data centers around Paris and one in Bordeaux.

  • Fluidstack: The AI cloud platform company signed a memorandum of understanding with the French government to build one of the world’s largest AI supercomputers, powered by French nuclear energy. The project is expected to receive an initial investment of 10 billion euros, with operations set to begin by 2026.

  • Mistral AI: Backed by Nvidia, the French startup behind the AI assistant Le Chat, plans to create Europe’s largest supercomputer and expand its partnerships with French companies such as Veolia and Dassault Systems.

The pledge of nearly 110 billion euros signals France’s ambition to become a leading force in AI development and infrastructure, attracting substantial investments from both domestic and international sources.

France to Announce 109 Billion Euros in Private Sector Investments for AI

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President Emmanuel Macron revealed that France will announce private sector investments totaling approximately 109 billion euros ($112.5 billion) in artificial intelligence (AI) during the Paris AI summit set to begin on Monday. This significant financing includes notable contributions from Canadian investment firm Brookfield and the United Arab Emirates (UAE).

Brookfield plans to invest 20 billion euros into AI projects in France, while UAE investments could reach up to 50 billion euros in the coming years. The Elysee Palace highlighted that the UAE’s investment will include funding for a 1 gigawatt data center, a critical component for powering AI systems. According to reports from La Tribune de Dimanche, the majority of Brookfield’s investment will also be directed towards a data center.

Given that AI requires immense amounts of energy to operate its vast data centers, Europe is anticipated to face challenges in meeting future energy demand. Macron’s announcement signals a significant push to position France as a leader in AI development and infrastructure. This move aligns with global trends, as other nations, including the U.S., are also ramping up investments in AI infrastructure to remain competitive.