Sovereign Deutschland-Stack: SAP solutions will provide the technology platform for easy integration of AI solutions
Deutsche Telekom, together with NVIDIA, is building one of the largest AI factories in Europe. Based in Munich, the new Industrial AI Cloud gives German companies the opportunity to further develop their AI models and applications with proprietary data. As early as the first quarter of 2026, companies will be able to book and use the computing power of the “AI factory” as needed. The construction of the factory will increase AI computing power in Germany by around 50 percent. Combined with Deutsche Telekom’s network and T Cloud, Deutsche Telekom and NVIDIA are creating an ecosystem for German and European companies that delivers AI sovereignty.
“Mechanical engineering and industry have made this country strong,” says Tim Höttges, CEO of Deutsche Telekom. “But here, too, we are challenged. AI is a huge opportunity. It will help to improve our products and strengthen our European strengths. In just six months, we turn an idea into real AI computing power, Made for Germany.”
“Germany’s engineering and industrial strengths are legendary, and now it’s being supercharged by AI,” said Jensen Huang, founder and CEO of NVIDIA. “With the world’s first Industrial AI Cloud and one of Germany’s largest GPU deployments, we’re bringing NVIDIA AI and robotics to start a new era of Germany’s industrial transformation.”
Due to the changing geo-political landscape, around 20 percent of companies will have moved their business-critical and sensitive data back from the cloud to local storage by 2024/25. This is creating a growing need for large organizations, SMEs, and start-ups to use sovereign and secure AI computing capacity that complies with European regulations, for example for AI applications in mechanical engineering, manufacturing, and logistics.
Diverse application scenarios, enormous productivity gains
The new Industrial AI Cloud meets the high and varied requirements of industry, with a diverse range of user scenarios. Several well-known partners and customers have already expressed their interest and declared their clear willingness to use the AI factory for their own purposes.
For example, it enables developers to build 3D digital twin of real factories by integrating NVIDIA Omniverse libraries for virtual planning, simulating, testing and improving the factory design before they are built in real life. This increases efficiency and leads to critical productivity gains. For example, cars and airplanes can be tested in digital wind tunnels, and virtual “crash tests” will also be possible.
Another area of application is the development of robots through physically accurate simulation-based learning and validation. One of the early adopters of the Industrial AI Cloud is Agile Robots. The robots are used, for example, in production processes of automobile manufacturers and electronics producers. They carry out mechanical assembly and polishing work with the highest precision and adapt their movements in real time. The Agile Robots robot H10-W will be also used to install the server racks at the Munich facility.
Also Read: Teleskope Secures $25M to Advance Agentic Data Security Platform
Large Language Models (LLMs) can also be developed and trained at a high level. Deutsche Telekom partner Perplexity will use the Industrial AI Cloud for this purpose, for example. True AI sovereignty requires that the inference layer generates answers and intelligence within Germany. Through its partnership with Deutsche Telekom, Perplexity will use the Industrial AI Cloud to provide secure, in-country AI inference for German users and enterprises.
Deutsche Telekom offers customers services related to the migration to the Industrial AI Cloud. This ranges from the connection and migration to the introduction and integration of AI solutions and applications of the new customers to corresponding security solutions and process integration.
SAP and Deutsche Telekom will work together to create a secure, sovereign, and high-performance digital infrastructure for public institutions and security for the Industrial AI Cloud. Deutsche Telekom provides the physical infrastructure, SAP provides the SAP Business Technology platform and applications – including modern AI technologies. In the future, all digital solutions for these target groups will be developed on the joint “Deutschland-Stack”. In this way, both companies guarantee the highest standards of data protection, security and reliability. This partnership stands for digital sovereignty “Made in Germany”.
Data, Figures, Facts
An existing data center will be completely renovated to build the Industrial AI Cloud, together with partner Polarise, to host more than one thousand NVIDIA DGX™ B200 systems and NVIDIA RTX PRO™ Servers with up to 10,000 NVIDIA Blackwell GPUs.
The computing power is 0.5 EFLOPS (Exa Flops, Floating Point Operations per Second). The storage capacity is around 20 petabytes. The data center is connected with four 400 GB fiber optic connections. The server park has a size of several thousand square meters, is fully energy-efficient and meets the highest security and quality standards. A total of 75 kilometers of fiber optic cable will be laid to connect the GPUs and the site. The work is being carried out by robots from Agile Robots, among others. The AI data center will start operations in the first quarter of 2026.
The expansion of the Munich data center to an AI factory of Deutsche Telekom is taking place independently of the EU project for the promotion of the construction of several AI gigafactories throughout Europe. The cooperation between Deutsche Telekom and NVIDIA, together with other partners is a “speedboat” for companies that want to develop and deploy artificial intelligence today.
Source: Telekom