Deutsche Telekom launches Industrial AI Cloud in Munich with Nvidia and Polarise.

Deutsche Telekom has officially launched its Industrial AI Cloud in Munich's Tucherpark, a facility built over six months in partnership with NVIDIA and data center operator Polarise. The infrastructure is built on nearly 10,000 NVIDIA Blackwell GPUs, including NVIDIA DGX B200 systems and NVIDIA RTX PRO Server GPUs, delivering computing power of up to 0.5 ExaFLOPS—enough capacity for all 450 million EU citizens to use an AI assistant or chatbot simultaneously. The AI factory is already operating at over a third of its capacity with existing customers, including Munich-based Agile Robots, which combines artificial intelligence with robotics, and PhysicsX, a company specializing in technical simulation.

Deutsche Telekom operates the facility under strict requirements for data protection, security, and availability on German soil. The AI factory serves as the foundation for the "Deutschland stack," provided jointly with SAP: Deutsche Telekom's subsidiary T-Systems manages the infrastructure and platform level, including T Cloud, while SAP provides the Business Technology Platform and business and AI applications. This partnership covers everything from physical infrastructure to software, enabling industry-specific solutions for public institutions, internal security, industry, and SMEs. The partnership with Siemens combines engineering with secure, sovereign IT and AI computing power, with Siemens' industrial expertise and SIMCenter simulation portfolio enabling digital twins, GPU-based simulations, and AI co-pilots accessible through the AI factory.

The data center occupies approximately 10,700 square meters of the former Hypovereinsbank facility in Tucherpark, a major European urban development project. The infrastructure is powered entirely by renewable energy and designed for maximum efficiency, with waste heat planned to supply the entire Tucherpark district. Cooling relies on water from the nearby Eisbach. A growing ecosystem of companies, research institutions, and start-ups is forming around the Industrial AI Cloud, with industrial partners building digital twins of factories and plants, simulating manufacturing processes, and developing robotics and quality inspection applications.

One of the first large-scale projects is SOOFI (Sovereign Open-Source Foundation Models), a research initiative for which Leibniz Universität Hannover has contracted Deutsche Telekom to provide technical infrastructure. The goal is to develop a sovereign open-source language model with around 100 billion parameters, trained and operated entirely in Europe and focused on European languages. As German Federal Finance Minister Lars Klingbeil stated: "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."