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Germany's first AI factory for industry goes into operation

One of Europe's largest AI factories strengthens Europe's digital sovereignty

February 04 2026

"Germany Stack" for sovereign AI applications in business, science and administration

Deutsche Telekom/T-Systems is officially launching its Industrial AI Cloud today in the presence of well known representatives from politics, business and science. The AI factory has been built over the past six months together with NVIDIA and data center partner Polarise. Deutsche Telekom/T-Systems is thus providing companies, research institutions and the public sector in Germany and Europe with high-performance, sovereign computing power for artificial intelligence (AI). 

A new AI hub for Germany

With the establishment of the AI factory in Munich’s Tucherpark a new AI hub arises in Germany. Several companies are now using the AI computing capacities. For example, the Munich-based provider Agile Robots combines artificial intelligence with robotics and brings its AI foundation to the Industrial AI Cloud. Or PhysicsX – a company that specializes in technical simulation to shorten the development time of products and product parts. The AI factory is already operating at over a third of its capacity with existing customers.

Tim Hoettges, Vorstandsvorsitzender Deutsche Telekom AG

Many can talk. Deutsche Telekom acts. We are investing in AI, in Germany as a business location and in Europe. Our AI factory in Munich is the basis for innovative business models, for industry, start-ups and the government – and for sovereignty. We are proving here that Europe can do AI.

Tim Höttges, CEO Deutsche Telekom

Computing and storage resources for AI applications are now available

"For the Investment Plan to succeed, we need both – public and private investment. We have created the conditions for public investment and are now working to ensure that investments are made at speed," says the German Federal Finance Minister Lars Klingbeil. "Today I was able to convince myself in an impressive way that private investments are also picking up. For me, it is particularly important that technological leadership must be at the core of Germany's future business model. This is an important stake for the German and European AI ecosystem. Not only do innovative companies benefit from this, it also strengthens digital sovereignty." 

In the Munich Industrial AI Cloud, computing and storage resources are now available for AI applications. The infrastructure is built on nearly 10,000 NVIDIA Blackwell GPUs, including NVIDIA DGX B200 systems and NVIDIA RTX PRO™ Server GPUs, —   to deliver a computing power of up to 0.5 ExaFLOPS. This would allow all 450 million EU citizens to use an AI assistant or chatbot at the same time.  Deutsche Telekom/T-Systems operates the AI factory under strict requirements for data protection, security and availability on German soil. The focus on sustainability is also important. 

Sovereign "Germany stack" for business and administration

The AI factory is the basis for the so-called "Germany stack", which Deutsche Telekom is providing together with SAP: Deutsche Telekom's subsidiary T-Systems is responsible for the infrastructure and platform level, including T Cloud. Based on this, SAP provides the Business Technology Platform and powerful business and AI applications. This "tech toolkit" provides all the technical elements that customers need for their cloud transformation. In this way, industry-specific solutions for public institutions, internal security, industry and SMEs, for example, can be implemented quickly, securely and in compliance with the rules. With this partnership, Deutsche Telekom/T-Systems and SAP cover everything that companies need for modern AI applications, from physical infrastructure to software – experts refer to it as one stack. This means that beyond pure computing power, advice can be provided along the specific needs of customers. 

German engineering meets sovereign AI

The partnership between Siemens and Deutsche Telekom/T-Systems combines engineering with secure, sovereign IT, connectivity and AI computing power. Siemens' industrial expertise and the integration of the simulation-portfolio SIMCenter on the Industrial AI Cloud form the basis for new value creation opportunities and greater competitiveness of the German economy. The software suite for high-precision simulations and digital twins enables companies to virtually develop, test and bring their products to market much faster, thus saving considerable costs. Large-scale industrial solutions such as the Digital Twin Composer, GPU-based simulations and AI co-pilots are made usable for companies via the AI factory. "Together with Deutsche Telekom, we are bringing our software into a GPU-accelerated, sovereign cloud – and can thus drastically reduce our customers' simulation times. Small and medium-sized enterprises also benefit from this. This is not a promise for the future," emphasizes Cedrik Neike, CEO of Digital Industries and member of the Managing Board of Siemens AG. "In Munich, in one of the largest AI factories in Europe, it is already a reality. And for future AI gigafactories, Deutsche Telekom will be one of the first to test our blueprints for the data centers of the future – in order to develop new centers even faster, more efficiently and cheaper." 

Maximum computing power with minimum carbon footprint 

For the AI factory, an existing data center in Munich with an area of around 10,700 square meters as part of the ongoing revitalization of Tucherpark, one of the largest European urban development projects, the former data center of the Hypovereinsbank, was gutted and fundamentally modernized. Equipped with high-performance fiber optic connection and stateof-the-art technology. The data center is powered entirely by renewable energy. It is designed for maximum energy 
efficiency. In the future, the waste heat will supply the entire Tucherpark district with heat as a source. A modern cooling concept relies on cooling of the data center with water from the nearby Eisbach. The Industrial AI Cloud thus fits into Deutsche Telekom/T-Systems' sustainability strategy. 

Partner ecosystem from industry, research and start-ups 

A broad ecosystem of companies, research institutions and start-ups is growing around the Industrial AI Cloud. For example, industrial partners can build digital twins of factories and plants, simulate manufacturing processes, or develop robotics and quality inspection applications. Start-ups leverage the NVIDIA AI platform to accelerate the delivery of new AI services to market. Research institutions gain access to sovereign high-performance computing power for their projects.  The Industrial AI Cloud is now available to customers from industry, start-ups, research and the public sector. Companies can flexibly book computing power and platform services as needed – from pilot projects to mission-critical production systems.

European Sovereignty: SOOFI Project on the Industrial AI Cloud 

One of the first large-scale projects on the Industrial AI Cloud is the SOOFI (Sovereign Open Source Foundation Models) research project. Leibniz Universität Hannover has awarded Deutsche Telekom/T-Systems a contract to provide the technical infrastructure for the development of a new European Large Language Model (LLM). The goal of SOOFI is a sovereign open-source language model with around 100 billion parameters, which is trained and operated entirely in Europe and focuses on European languages. This creates one of Europe's most important AI initiatives for trustworthy, sovereign language models, focused on European languages and industrial applications.

Further voices:

Hubert Aiwanger, Bavarian Minister of Economic Affairs

"Bavaria is already the second largest data center location in Germany in terms of installed capacity. We have a strong industry, excellent research and the best networking – these are ideal conditions for industrial AI. With the Bavarian Action Plan, we are ensuring that data centres continue to be happy to settle in Bavaria. With the 'Contact Point Datacenter Bavaria', coordinated grid connections, faster procedures and practical energy efficiency specifications, we are committed to creating reliable framework conditions for investments and jobs in Bavaria."

Thomas Saueressig, Member of the Executive Board of SAP SE Customer Services & Delivery

"With the Industrial AI Cloud, Deutsche Telekom, SAP and other partners are creating a sovereign technology foundation for scalable industrial AI in Germany: Our Business Technology Platform and AI Foundation securely anchor AI in business processes, protect data in Germany and enable productive innovations. It's time to shift the narrative from risk to opportunity." 

Rev Lebaredian, Vice President of Omniverse and Simulation Technology at NVIDIA 

"The convergence of artificial intelligence and the physical world is sparking an industrial revolution that will fundamentally transform how products are designed, manufactured, and operated," said Rev Lebaredian, Vice President of Omniverse and Simulation Technology at NVIDIA. "The Industrial AI Cloud provides the sovereign, high-performance AI infrastructure that Europe needs to capture this opportunity and lead the next era of industrial innovation." 

Antonio Krüger, CEO of the German Research Center for Artificial Intelligence (DFKI) 

“The opening of Deutsche Telekom's AI factory is good news for Germany and Europe. Successful AI application requires computing power. European industry has a major advantage: its treasure trove of data. So far, however, this data has only been used to a limited extent for AI. Now the appropriate infrastructure is being created to better tap this potential. The fact that companies can rely on a European provider strengthens technological sovereignty.”

Jörg Bienert (Managing Director of the German AI Association)

"In the Soofi project, we are working with seven research institutions and two startups to create an open-source foundation model as a basis for diverse applications in business and administration. The training takes place on Deutsche Telekom's Industrial AI Cloud, which won an international tender due to its state-of-the-art infrastructure and excellent service. We look forward to jointly shaping an important element of a sovereign, open and secure AI infrastructure."

Jacomo Corbo, CEO and Co-Founder of PhysicsX

“Europe’s industrial strength has always been rooted in engineering excellence and the ethic of continuous improvement. Its continued competitiveness will turn on major reinvention and the embrace of software-defined hardware innovation and the embedding of AI into industrial workflows. With the launch of Deutsche Telekom's Industrial AI Cloud and AI factory, Europe is building the sovereign infrastructure required to move AI from experimentation into production across its most critical industries, turning industrial expertise and data into durable technological advantage. PhysicsX is proud to be a linchpin part of the Industrial AI Cloud software stack and to be working closely with T-Systems to accelerate the roll-out of AI for engineering and manufacturing across the European continent.”

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