Germany is set to host Europe’s first industrial AI cloud after Nvidia and Deutsche Telekom announced a landmark collaboration designed to bolster the region’s technological sovereignty.

The two companies plan to complete the facility, dubbed an “AI factory,” by 2026 at the latest, equipping it with some 10,000 of NVIDIA’s latest GPUs. Deutsche Telekom will oversee construction, data‑center operations, security and AI solutions, while NVIDIA provides the hardware and software required to power advanced manufacturing workloads.

The factory will house some Nvidia servers

During a meeting with Chancellor Friedrich Merz in Berlin, Nvidia’s founder and CEO, Jensen Huang, emphasized that modern manufacturers need not only physical production lines but also digital ones.

“In the era of AI, every manufacturer needs two factories: one for making things, and one for creating the intelligence that powers them.” Huang.

Through hosting Europe’s first sovereign industrial AI infrastructure, Huang added, the region’s industrial champions will have the high‑performance computing needed to drive design, engineering simulations, digital‑twin creation, and robotics development.

Timotheus Höttges, CEO of Deutsche Telekom, underlined the urgency of the initiative, remarking that “Europe’s technological future needs a sprint, not a stroll.”

He argued that rapid decisions and collaborative innovation are vital if Europe is to secure a leading role in the global technology race.

Chancellor Merz, for his part, welcomed the investment as a major step towards Germany’s digital sovereignty, praising Nvidia’s commitment to strengthening the country’s innovative capacity.