Deutsche Telekom (DT) is investing almost €250 million to expand its AI factory in Munich.
As a result, the telecom giant hopes to double its computing capacity to meet growing demand for AI. The expansion will bring additional Nvidia Blackwell Ultra B300 GPUs to the existing systems, increasing the facility’s capacity to 20 megawatts.
The extra computing power will help businesses develop and run large AI models, carry out complex simulations and test new technologies. It will also support physical AI, allowing companies to test robots, products and production processes in virtual environments before using them in the real world.
DT CEO, Tim Höttges said: “Germany must not only be a user of AI; it must also create value and prosperity itself. Telekom has moved forward here at a rapid pace. Now we are taking the next step and expanding. So ideas become innovative products, and innovations become growth.
“The world must take Europe seriously. Powerful AI emerges from the interplay of computing capacity, secure data spaces, high-performance connectivity, and a sovereign, secure environment. Together with partners from industry, academia, and the public sector, Telekom brings these building blocks together into a European AI ecosystem.
“The goal is not only to develop AI, but to put it into practice as a scalable business model – delivering measurable efficiency gains, new products, and additional value creation in Germany and Europe.”
The expansion has received support from German government ministers and business leaders, who see AI as an important opportunity for the country’s industrial future.
Federal Minister for Digital Affairs and State Moderinsation, Karsten Wildberger, said: “Telekom thinks big and acts fast. In just a few months, it went from an idea to operations; after one year, it was fully booked, and now it is doubling capacity. This is exactly the mindset and pace we need to win the AI race for Germany and Europe. The federal government will do its part to help make further successes like this possible.”
Federal Minister for Economic Affairs and Energy Katherina Reiche, concluded: “The next wave of artificial intelligence will fundamentally change the way we manufacture. Germany has a unique competitive advantage in this regard: the process expertise our industry has built up over decades. When we combine this expertise with powerful AI, we create industrial intelligence. To achieve this, our companies need secure, sovereign, and affordable computing power.
“Here in Munich, Deutsche Telekom is creating exactly these conditions and doubling its capacity to 20,000 graphics processing units. This is entrepreneurial courage that turns technological possibilities into industrial reality. And this is precisely where a major opportunity lies for Germany as a business location.”
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