Deutsche Telekom officially launches its Industrial AI Cloud in the presence of prominent representatives from politics, business and science.
The AI Factory was built over the past six months in collaboration with NVIDIA and data center partner Polarise. Deutsche Telekom is thus providing high-performance sovereign computing power for artificial intelligence (AI) to companies, research institutes and the public sector in Germany and Europe.
The opening of an AI factory in Munich’s Tucherpark marks the birth of a new AI hub in Germany. Several companies are now using AI computing capacity. For example, Munich-based provider Agile Robots combines artificial intelligence and robotics and deploys its AI foundations in an industrial AI cloud. or PhysicsX – a company specializing in technical simulation to reduce development time for products and product parts. AI Factory is already running more than a third of its capacity for existing customers.
Munich Industrial AI Cloud now makes computing and storage resources available for AI applications. The infrastructure is built on approximately 10,000 NVIDIA Blackwell GPUs, including NVIDIA DGX B200 systems and NVIDIA RTX PRO™ Server GPUs, delivering up to 0.5 ExaFLOPS of compute power. This will allow all 450 million EU citizens to use an AI assistant or chatbot at the same time.
Deutsche Telekom operates its AI factory based on strict requirements regarding data protection, security and availability in Germany. It is also important to focus on sustainability.
The AI Factory is the basis of the so-called “German Stack” (see glossary below) that Deutsche Telekom is offering jointly with SAP. T-Systems, a subsidiary of Deutsche Telekom, is responsible for the infrastructure and platform level, including T-Cloud. On this basis, SAP offers a business technology platform and powerful business and AI applications. This “technical toolkit” provides all the technical elements customers need for cloud transformation. In this way, industry-specific solutions, for example for public authorities, internal security, industry and small and medium-sized enterprises, can be implemented quickly and securely in compliance with the rules.
With this partnership, Deutsche Telekom and SAP will cover everything enterprises need for modern AI applications, from physical infrastructure to software. Experts call this one stack. This means we can go beyond pure computing power and provide advice tailored to a customer’s specific needs.
The partnership between Siemens and Deutsche Telekom combines engineering with secure sovereign IT, connectivity and AI computing capabilities. The integration of Siemens’ industrial expertise and simulation portfolio SIMCenter into the Industrial AI Cloud forms the basis for new value creation opportunities and increased competitiveness for the German economy. High-precision simulation and digital twin software suites enable companies to virtually develop, test, and bring products to market faster, resulting in significant cost savings. Large-scale industrial solutions such as Digital Twin Composer, GPU-based simulation, and AI Copilot will be made available to enterprises through AI Factory.
At the AI Factory, the existing data center of the Hippoferreins Bank with an area of approximately 10,700 square meters in Munich was demolished and radically modernized as part of the continued revitalization of Tucherpark, one of Europe’s largest urban development projects. Equipped with high-performance fiber optic connectivity and cutting-edge technology.
The data center is powered entirely by renewable energy. Designed for maximum energy efficiency. In the future, waste heat will be supplied as a heat source for the entire Tucher Park area. Modern cooling concepts rely on cooling data centers with water from nearby Eisbach. The Industrial AI Cloud therefore fits into Deutsche Telekom’s sustainability strategy.
A broad ecosystem of companies, research institutions, and startups is growing around industrial AI clouds. For example, industrial partners can build digital twins of factories and plants, simulate manufacturing processes, and develop robotics and quality inspection applications. Startups leverage the NVIDIA AI Platform to accelerate the delivery of new AI services to market. Research institutions will have access to sovereign high-performance computing power for their projects.
Industrial AI Cloud is now available to industrial, startup, research, and public sector customers. Businesses have the flexibility to reserve computing power and platform services as needed, from pilot projects to mission-critical production systems.
One of the first large scale industrial AI cloud projects was the SOOFI (Sovereign Open-Source Foundation Models) research project. Leibniz University Hannover has signed an agreement with Deutsche Telekom to provide the technical infrastructure for the development of a new European Large-Scale Language Model (LLM).
SOOFI’s goal is a sovereign open source language model with approximately 100 billion parameters, trained and operated entirely in Europe, and focused on European languages. This creates one of Europe’s most important AI initiatives for a trusted, sovereign language model, focused on European languages and industrial applications.
Tim Hetges, CEO of Deutsche Telekom
Many people can speak. Represented by Deutsche Telekom. We are investing in AI in Germany and Europe, where we operate. Our AI factory in Munich is the foundation for innovative business models for industry, start-ups, governments and sovereigns. We are here proving that Europe can make AI a reality.
Lars Klingbeil, German Federal Minister of Finance
Successful investment plans require both public and private investment. We are working to improve the conditions for public investment and ensure that investment is made promptly. Today, I was impressed and convinced that private investment is also picking up. For me, it is particularly important that technological leadership is at the core of Germany’s future business model. This is an important issue for Germany and the European AI ecosystem. Not only will innovative companies benefit from this, but their digital sovereignty will also be strengthened.
Cedric Neike, CEO, Digital Industries, Siemens
We are working with Deutsche Telekom to deploy our software on a GPU-accelerated sovereign cloud, which can significantly reduce simulation times for our customers. Small businesses will also benefit from this. This is not a guarantee for the future. That’s already a reality in Munich, one of Europe’s largest AI factories. And for the AI Gigafactory of the future, Deutsche Telekom will be one of the first companies to test the blueprint for the data center of the future in order to develop new centers faster, more efficiently and cheaper.
Hubert Eivanger, Bavarian Minister of Economy
Bavaria is already Germany’s second largest data center location in terms of installed capacity. We have a strong industry, great research, and the best networking, which are ideal conditions for industrial AI. With the Bavaria Action Plan, we are working to ensure that our data centers continue to reside safely in Bavaria. With “Contact Point Data Center Bavaria”, a coordinated grid connection, faster procedures and practical energy efficiency specifications, we are committed to creating reliable framework conditions for investment and employment in Bavaria.
Markus Blume, Bavarian Minister of Science
The next step in the 21st century’s industrial revolution is taking place in Bavaria. Europe’s most valuable network operator and the world market leader in AI chips are joining forces in Munich. The fact that this huge project is being implemented here makes it clear that our ecosystem has once again proven its worth. And thanks to a $1 billion initiative by Telekom, NVIDIA, and their partner SAP, that ecosystem is getting even stronger. Telekom is an important partner for the Free State. Thanks to Tim Höttges and Telekom for taking this step. It presents us with exciting opportunities. Together, we still have much to accomplish.
Thomas Saueressig, member of the SAP SE Customer Services & Delivery Board of Directors
With Industrial AI Cloud, Deutsche Telekom, SAP and other partners are building a sovereign technology foundation for scalable industrial AI in Germany. Our business technology platform and AI foundation securely anchor AI in business processes, protect Germany’s data, and enable productive innovation. It’s time to shift the narrative from risk to opportunity.
Rev Lebaredian, Vice President, Omniverse and Simulation Technologies, NVIDIA
The convergence of artificial intelligence and the physical world is driving an industrial revolution that will fundamentally change the way products are designed, manufactured, and operated. The Industrial AI Cloud provides the sovereign, high-performance AI infrastructure that Europe needs to seize this opportunity and lead the next era of industrial innovation.
Antonio Kruger, 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 applications require computing power. European industry has a huge advantage: a wealth of data. However, so far this data has only been used for AI to a limited extent. Right now, the right infrastructure is being created to exploit this potential more effectively. The fact that companies can rely on European providers strengthens technological sovereignty.
Jörg Bienert, Managing Director, German AI Association
The Soofi project is collaborating with seven research institutions and two startups to create an open source foundational model that underpins a wide variety of business and management applications. The training will take place on Deutsche Telekom’s Industrial AI Cloud, which was won in an international tender due to its state-of-the-art infrastructure and excellent service. We look forward to working together to form key elements 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 an ethic of continuous improvement. Its continued competitiveness will drive massive reinvention, adoption of software-defined hardware innovations, and the incorporation of AI into industrial workflows. With the launch of Deutsche Telekom’s Industrial AI Cloud and AI Factory, Europe is building the sovereign infrastructure needed to move AI from experiment to production across its most important industries, turning industrial expertise and data into durable technological advantage. PhysicsX is proud to be part of the cornerstone of the industrial AI cloud software stack and is working closely with T-Systems to accelerate the deployment of AI in engineering and manufacturing across the European continent.
