European tech strategy advances with Germany’s new AI factory
The launch of a new AI factory positions Germany as a central hub for European AI development.
Germany has launched one of Europe’s largest AI factories to boost EU-wide sovereign AI capacity. Deutsche Telekom unveiled the new ‘Industrial AI Cloud’ in Munich, in partnership with NVIDIA and Polarise.
Designed to deliver high-performance AI computing for industry, research, and public institutions, the platform keeps data operations under European jurisdiction. Company executives described the project as proof that Europe can build large-scale AI infrastructure aligned with its regulatory and sovereignty goals.
The AI factory runs on nearly 10,000 NVIDIA Blackwell GPUs, providing up to 0.5 exaFLOPS of computing power. Telekom said the capacity would be sufficient to support hundreds of millions of users accessing AI services simultaneously across the EU.
Officials in Germany framed the AI factory initiative as a strategic investment in technological leadership and digital independence. The infrastructure operates under German and EU data protection rules, positioning compliance and security as core competitive advantages.
Industrial applications are central to the project, with companies such as Siemens integrating simulation tools into the platform. The AI factory also runs on renewable energy, uses river water cooling, and plans to reuse waste heat within Munich’s urban network.
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