DT Expands AI Factory to 20 MW

Escalating demand for high-performance computing has led Deutsche Telekom to expand its Industrial AI Cloud facility at Munich’s Tucherpark. The AI infrastructure is projected to reach a total capacity of 20 megawatts, supported by nearly a quarter of a billion euros in funding for NVIDIA Blackwell Ultra B300 systems. These will operate alongside current B200 systems and RTX PRO 6000 Blackwell Server Edition GPUs.

The integration of B300 systems will effectively double the quantity of specific chips within Telekom’s AI environment. Since these newer processors offer enhanced performance, the total computational capacity is projected to increase more significantly than the hardware count alone. The infrastructure is optimized to train and execute expansive AI models, perform complex reasoning, and facilitate simulations. Within virtual environments, enterprises can evaluate how robotics and products function under real-world conditions. Telekom reports that simulations requiring weeks or months can now be finalized in a few hours. Clients will also maintain the ability to train proprietary AI models.

“Germany must not only utilize AI but also derive economic value and prosperity from the technology. Telekom acted decisively in this sector and is now taking the subsequent step by increasing capacity. This transition can convert concepts into innovative products and turn innovation into economic growth. Robust AI necessitates computing capacity, secure data environments, high-performance connectivity, and a sovereign framework. In collaboration with partners from industry and academia, Telekom is integrating these components into a European AI ecosystem. The objective is to implement AI as a scalable business model that provides measurable efficiency and additional value within Germany and across Europe,” stated Tim Höttges, CEO of Deutsche Telekom.

The Industrial AI Cloud commenced operations at Tucherpark in February 2026. Corporations, startups, research institutions, and the public sector utilize the facility to develop and execute AI applications in production environments. The inaugural expansion phase increased Germany’s available AI computing resources by 50 percent and reached full capacity seven months after the site opened. Telekom initiated planning for subsequent expansion phases as early as May. The organization indicates that this demand demonstrates AI’s transition from research-based pilot projects into standard industrial use cases.

“Telekom is fulfilling the commitment it announced in February. The initial expansion stage has reached capacity, with industrial entities such as Siemens and Daimler Truck currently utilizing the infrastructure, while a robust project pipeline indicates continued demand. This expansion represents the next phase toward transitioning AI computing capacity in Germany from experimental projects into broad industrial applications,” remarked Ferri Abolhassan, a member of Deutsche Telekom’s Board of Management and CEO of T-Systems.

Telekom identifies Currenta, Siemens, Synopsys, Agile Robots, Wandelbots, PhysicsX, Noxtua, EDAG, and the Soofi project among the organizations utilizing the infrastructure. Their applications encompass industrial AI, robotics, simulations, and language models. Clients can develop digital twins and robotics applications, simulate production workflows, and train models like NVIDIA’s Nemotron and the German-language Soofi model, which is hosted on Telekom’s infrastructure. The company asserts the service is engineered to comply with European mandates regarding data protection, security, and data sovereignty.

Deutsche Telekom is also engaged in discussions with partners regarding the expansion of its operations in Bavaria. While talks have reached an advanced stage, any prospective project remains contingent upon sustainable financial conditions and an economically viable operating model. A final investment decision has not yet been reached by the company.

The current facility occupies approximately 10,700 square meters in a refurbished data center previously operated by HypoVereinsbank. NVIDIA and data-center partner Polarise collaborated with Telekom to construct the site. At launch, the facility utilized nearly 10,000 NVIDIA Blackwell GPUs, providing up to 0.5 exaFLOPS of computing power and 20 petabytes of storage. Customers had already occupied more than one-third of the available capacity at the time of opening.

Enterprises can secure computing resources and platform services as required, ranging from pilot initiatives to mission-critical systems. The organization states the site utilizes renewable energy and maintains a power usage effectiveness (PUE) ratio of 1.2. Cooling is facilitated by water from the nearby Eisbach stream, while waste heat is intended to support the broader Tucherpark district.

This Munich investment is part of a collective European initiative to secure the computing infrastructure required for AI deployment. The separate EuroHPC network includes 19 public AI Factories, with the European Commission projecting a total investment of €10 billion in supercomputing and AI Factories through 2027. In July 2026, the Commission initiated a call to establish up to seven AI Gigafactories, a move expected to attract €20 billion in private capital alongside €10 billion in public support.