With the Industrial AI Cloud, Deutsche Telekom and NVIDIA have launched an initiative that has the potential to fundamentally transform the industrial use of artificial intelligence (AI) in Germany and across Europe. In just six months, a vision has evolved into a fully functional large-scale project – a joint step by industry and the technology sector towards digital sovereignty Made for Germany.

A new benchmark for AI computing power in Europe

Scheduled to go live in the first quarter of 2026, the Industrial AI Cloud is already one of the most ambitious digital projects in Europe. Around 10,000 NVIDIA Blackwell GPUs and over 1,000 NVIDIA DGX B200 systems will be installed in a completely modernised Telekom data centre in Munich. This will create one of the continent’s most powerful AI infrastructures – delivering roughly 50 per cent more computing capacity for AI applications in Germany. The total investment amounts to around one billion euros.

At the launch, Timotheus Höttges, CEO of Deutsche Telekom, emphasised the pioneering nature of the project:

“Mechanical engineering and industry have made this country strong,” said Höttges. “But here too, we are being challenged. AI is a huge opportunity. It will help us improve our products and reinforce our European strengths. In just six months, we are turning an idea into real AI computing power – Made for Germany.”

His words underline that Telekom views the Industrial AI Cloud as far more than a technical experiment – it is a symbol of Europe’s ability to combine technological sovereignty with industrial strength.

An ecosystem for business, research and security

The initiative is more than a single project; it forms the foundation of a growing AI ecosystem linking business, research and public institutions. Alongside Deutsche Telekom and NVIDIA, the first partners include SAP, Siemens, Agile Robots, Wandelbots, Quantum Systems, PhysicsX, and Perplexity.

SAP plays a particularly central role. With its Business Technology Platform, the company provides the bridge between industrial applications and the new cloud infrastructure.

“Germany and Europe have everything it takes to play a leading role in the global race for industrial AI,” said Christian Klein, CEO of SAP. “Combined with the Industrial AI Cloud, this creates a powerful, sovereign infrastructure that focuses European innovation and accelerates its transfer into industrial practice.”

From research to production – new pathways for Industry 4.0

The Industrial AI Cloud is designed to transform industrial processes from development and simulation to robotics. In future, AI models can be trained, tested and deployed productively within a secure European infrastructure – independent of non-European cloud providers.

This opens up vast opportunities for the industrial sector. Roland Busch, CEO of Siemens, put the project into perspective:

“The Industrial AI Cloud is an important contribution to scaling AI in Germany. It will make companies of all sizes more productive and competitive. Customers such as Mercedes-Benz and the BMW Group can perform highly complex simulations with AI-powered digital twins, massively accelerating their development processes.”

Busch also noted that Siemens intends to use the cloud itself – a signal that the initiative is not just symbolic but delivers tangible industrial value.

Innovative SMEs are also set to benefit. Zhaopeng Chen, CEO of Munich-based Agile Robots, explained:

“Our Robotic Foundation Model is based on vast data volumes and therefore requires high computing power – a requirement that the Industrial AI Cloud perfectly fulfils. This step marks an important milestone for Agile Robots and strengthens the competitiveness of German industry.”

Political backing for digital sovereignty

The project was unveiled in the presence of senior figures from politics and business – and met with broad approval. Dr Karsten Wildberger, Federal Minister for Digitalisation and State Modernisation, praised the commitment of Telekom and NVIDIA as exemplary for Germany’s strategic digital trajectory:

“Strong partnerships between German companies and international technology leaders are crucial to making Germany a leading AI nation. Building our own expertise can only succeed through open exchange and cooperation on an equal footing. Collaborations like this show that Germany is an attractive destination for digital investment.”

Dorothee Bär, Federal Minister for Research, Technology and Space, also highlighted the importance of the private-sector initiative:

“Artificial intelligence is one of the key technologies for our country. By deploying AI in industry and start-ups, we can significantly boost our competitiveness. This shows that Germany can do AI – and can do it independently.”

Private initiative as a model for the future

Unlike many major digital infrastructure projects, the Industrial AI Cloud is not government-funded but a fully private-sector initiative. Christian Sewing, CEO of Deutsche Bank, stressed this point:

“The Industrial AI Cloud is a milestone because it allows us to accelerate the pace of progress in future technologies. Companies are taking responsibility to make Germany once again the growth engine of Europe. That is exactly what Made for Germany stands for.”

This approach reflects the broader ambition of building a sovereign European AI ecosystem that safeguards both innovation and data protection.

A new era of industrial intelligence

Jensen Huang, founder and CEO of NVIDIA, sees the collaboration with Deutsche Telekom as a new chapter in industrial development:

“Germany’s strength in engineering and industry is legendary – and now it’s being expanded further through AI. With the world’s first Industrial AI Cloud, we’re bringing NVIDIA AI and robotics here to usher in a new era of industrial transformation.”

This “new era” extends beyond manufacturing to enable entirely new forms of digital collaboration. Julie Linn Teigland, Global Vice Chair at EY, described the vision:

“The future of manufacturing is not just automated – it is intelligent, adaptable and alive in both worlds. This initiative empowers industry to harness the full potential of AI and provides a blueprint for Europe.”

Conclusion: AI as the key to digital sovereignty

With the Industrial AI Cloud, Germany is creating not only a technological milestone but also a strategic infrastructure. It combines computing power, data security and industrial expertise – laying the foundation for true European self-determination in the digital era.

As Tim Höttges concluded:

“AI is no longer a topic for the future – it is the decisive factor for competitiveness and innovation in Europe.”