NVIDIA and Deutsche Telekom are reportedly preparing to announce the construction of a €1 billion AI data center in Munich, Germany.
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The initiative will be jointly financed by both companies, with SAP lined up as the first anchor client. The official announcement is anticipated to take place in November, featuring the CEOs of all three companies and Germany's Minister for Digitalization.
Project Scope and European Context
The new facility is intended to serve as a hub for advanced AI systems. According to sources cited by Bloomberg, the project will utilize approximately 10,000 NVIDIA GPUs.
While a significant investment for Europe, the scale highlights the difference in infrastructure ambition compared to the U.S. By contrast, a single data center project in Texas, involving SoftBank, OpenAI, and Oracle, is being designed to house an estimated 500,000 GPUs.
This comparison underscores the scale of global investment required to keep pace in the AI race.
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EU Ambition vs. Reality
In February, the European Union unveiled an ambitious €200 billion plan aimed at tripling its capacity for AI systems over the next five to seven years. However, the process has faced significant delays. The bloc has yet to finalize the precise mechanisms for reviewing applications and distributing this funding.
For now, the €1 billion investment in Munich stands in contrast to the hundreds of billions of dollars being announced and planned across the Atlantic in the United States, illustrating the ongoing challenges Europe faces in rapidly scaling its AI infrastructure.
