Deutsche Telekom and Nvidia have announced the launch of the Industrial AI Cloud, a new €1bn ($1.2bn) AI infrastructure project that is set to become operational in early 2026.

The platform, developed through a partnership between Deutsche Telekom and Nvidia, will provide organisations in Germany and throughout Europe with access to significant computing capacity for AI applications.

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According to companies, this initiative will offer approximately 50% more AI computing power within Germany.

The project has attracted initial participation from SAP and other technology firms, including Siemens, Agile Robots, Quantum Systems, Wandelbots and Perplexity, plus PhysicsX.

SAP is providing its Business Technology Platform and applications, including advanced AI technologies, to support public institutions and meet security requirements.

Deutsche Telekom is responsible for supplying the physical infrastructure for the cloud platform.

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Both companies stated that all digital solutions for targeted user groups will be developed on the “Deutschland-Stack,” which they say will uphold data protection, security, and reliability standards.

The Industrial AI Cloud’s technical foundation includes over 1,000 Nvidia DGX B200 systems and Nvidia RTX PRO Servers equipped with up to 10,000 Nvidia Blackwell graphics processing units (GPUs).

These systems are currently being installed at a data centre in Munich that has undergone complete renovation for this purpose.

The infrastructure integrates software such as Nvidia CUDA-X, Nvidia Omniverse, and Nvidia AI Enterprise into Deutsche Telekom’s cloud ecosystem.

Nvidia CEO Jensen Huang said: “Germany’s engineering and industrial strengths are legendary, and now it’s being supercharged by AI.

“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.”

The Industrial AI Cloud aims to accelerate the digital transformation of German industry by facilitating the development, training, and deployment of AI in manufacturing environments.

The platform will support a range of applications from robotics to digital twins and predictive maintenance, enabling use cases for manufacturers, automakers, healthcare providers, energy companies, and pharmaceutical companies.

The broader AI ecosystem forming around the Industrial AI Cloud includes about ten companies at present.

The project is also identified as one of the flagship initiatives under “Made 4 Germany,” a programme involving more than 100 businesses working to strengthen Germany’s competitiveness and advance economic digitalisation.

The infrastructure is intended to give large organisations, small and medium-sized enterprises, and start-ups access to scalable GPU capacity under flexible contractual terms.

Deutsche Telekom CEO Timotheus Höttges said: “Mechanical engineering and industry have made this country strong.

“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.”

Deutsche Telekom also emphasised that the platform would be operated as a private-sector initiative based on sovereign IT infrastructure located within German data centres.