Nvidia and Deutsche Telekom to build an AI factory in Germany for €1 billion: what is known
5 November 21:23
Nvidia and Deutsche Telekom have announced a €1 billion joint project to create one of the most powerful artificial intelligence factories in Europe, reports "Komersant Ukrainian".
According to The Wall Street Journal, the new center will be set up in Munich on the basis of an existing data center. It will be modernized by installing 10,000 Nvidia Blackwell GP Us, the company’s latest chips.
The facility is scheduled to be launched in early 2026.
Why it is necessary
After the project is launched , AI computing capacity in Germany will increase by about 50%.
To ensure the connection, engineers will lay tens of kilometers of fiber optic cable.
There are already first potential customers, including Perplexity, which plans to use the new infrastructure for its AI services.
“We’re combining Nvidia’s artificial intelligence and robotics technologies to usher in a new era of industrial transformation in Germany,” said Nvidia CEO Jensen Huang.
Europe tries to catch up with the US in the global AI race
Since the launch of ChatGPT in 2022 , American companies have invested hundreds of billions of dollars in new data centers.
One of the largest projects is Stargate AI, which builds data centers for OpenAI with the participation of SoftBank, Oracle, MGX, and OpenAI itself. The initial investment is $100 billion.
Against this background, European initiatives look more modest so far.
The new project of Nvidia and Deutsche Telekom is not part of the official EU program to create “AI gigafactories,” but analysts consider it a symbol of Europe’s growing ambitions.
EU reaction
The EU has already pledged to invest €200 billion in the development of artificial intelligence as part of its new digital autonomy strategy.
Another €150 billion is planned to be raised from private sources over the next five years, and a special €20 billion fund will finance the construction of up to five AI gigafactories.
Nvidia strengthens its position
on October 29, Nvidia became the first company in the world with a market capitalization of $5 trillion.
Its shares continue to rise due to the explosive demand for AI solutions, sales of servers and chips, and the prospect of expanding access to the Chinese market.
