Deutsche Telekom plans AI data center with Nvidia for 2026 launch

Deutsche Telekom plans to begin construction of a large-scale AI data center in 2026, developed in partnership with Nvidia and investment firm Brookfield as part of what the companies describe as the world’s first industrial AI cloud for European manufacturers. The facility represents a significant push into AI infrastructure by the German telecom giant, targeting the growing demand for specialized computing power among manufacturing companies across Germany and mainland Europe.

What you should know: Deutsche Telekom is targeting a 2026 construction start for its AI “Gigafactory” using Nvidia’s advanced chip technology.

• CEO Tim Höttges confirmed the timeline during an investor call, noting that Nvidia chips can already be used to test AI functionalities before deployment in the facility.
• The project involves partnerships with Nvidia for hardware and software, plus Brookfield for investment backing.
• Deutsche Telekom will handle data center delivery, compute capacity sales and operations, plus security and AI solutions.

Where it’s happening: North Rhine-Westphalia region is under consideration for the AI facility location.

• Discussions are ongoing with German utility company RWE over sites that already have electricity and water approvals.
• Höttges emphasized that while plans could change, building the AI data center remains a firm company objective.

The competitive landscape: Deutsche Telekom faces significant competition for European AI infrastructure funding.

• The company plans to compete in a European tender that has attracted almost 100 applicants, according to Höttges.
• This reflects the intense interest across Europe in developing AI computing capabilities.

Technical specifications: Nvidia will provide substantial hardware and software infrastructure for the project.

• The initiative includes 10,000 graphics processing units (specialized computer chips designed to handle AI calculations), specifically DGX B200 systems and RTX Pro servers.
• Software acceleration tools include CUDA-X, RTX, and Omniverse platforms for AI development and simulation.

What they’re saying: Nvidia’s leadership frames the project as addressing a fundamental shift in manufacturing needs.

• “In the era of AI, every manufacturer needs two factories: one for making things, and one for creating the intelligence that powers them,” said Jensen Huang, Nvidia’s founder and CEO.
• “By building Europe’s first industrial AI infrastructure, we’re enabling the region’s leading industrial companies to advance simulation-first, AI-driven manufacturing.”

Why this matters: The project positions Deutsche Telekom to capitalize on the growing intersection of telecommunications and AI infrastructure, particularly as European manufacturers increasingly require specialized computing power for AI-driven operations and simulations.