SHERIDAN, WYOMING – August 5, 2025 – In a landmark move to accelerate Europe’s industrial AI capabilities, Deutsche Telekom and NVIDIA have announced a strategic collaboration to build the continent’s first sovereign industrial AI cloud infrastructure by 2026. The initiative is set to support the next wave of smart manufacturing and simulation-driven production for European industry leaders.
Purpose-built infrastructure for AI-powered factories
Designed as a dedicated compute backbone for European manufacturers, the industrial AI cloud will combine NVIDIA’s cutting-edge GPU technology with Deutsche Telekom’s secure and sovereign infrastructure services. The facility, which will be located in Germany, is intended to support a wide range of AI workloads relevant to digital twins, predictive maintenance, automated inspection, and industrial simulation.
Key technical highlights include:
- Deployment of 10,000 high-performance GPUs via NVIDIA DGX B200 systems and RTX Pro Servers
- Full support for NVIDIA CUDA-X, RTX, and Omniverse software stacks
- Integration with partner applications across AI modeling, robotics, and digital engineering
Driving next-gen workflows and digital manufacturing
Unlike general-purpose cloud services, this infrastructure is designed specifically for industry-grade AI applications. Manufacturing and engineering firms will be able to run resource-intensive tasks like:
- Real-time simulation for factory design and optimization
- AI-assisted robotic coordination
- Predictive failure analysis across complex machinery networks
- Virtual commissioning using physics-accurate digital twins
By shifting toward simulation-first production and AI-native development, industrial firms can dramatically reduce time-to-market and enhance operational agility.
The European context: AI sovereignty and regulatory trust
The initiative also responds to growing demand for sovereign cloud infrastructure that complies with EU regulations around data privacy and localization. Deutsche Telekom will oversee all aspects of infrastructure operations, including:
- Secure data centers and regional compute clusters
- AI solution management and performance optimization
- Adherence to GDPR and European data residency mandates
This approach gives European manufacturers the confidence to develop AI solutions within a compliant and trusted framework — a key differentiator from U.S.- or China-based hyperscalers.
Leadership insights: urgency and competitive edge
"Europe's technological future needs a sprint, not a stroll. We must seize the opportunities of artificial intelligence now, revolutionize our industry and secure a leading position in the global technology competition. Our economic success depends on quick decisions and collaborative innovations," said Timotheus Höttges, CEO of Deutsche Telekom AG.
Jensen Huang, founder and CEO of NVIDIA, added: “In the era of AI, every manufacturer needs two factories: one for making things, and one for creating the intelligence that powers them. By building Europe’s first industrial AI infrastructure, we’re enabling the region’s leading industrial companies to advance simulation-first, AI-driven manufacturing."
Strategic outlook for European industry
This partnership comes at a critical juncture as manufacturers face mounting global pressure to digitalize processes, integrate AI across operations, and maintain competitiveness. The ability to access sovereign, high-performance AI infrastructure could prove transformative for industries such as:
- Automotive and mobility
- Aerospace and defense
- Semiconductor and electronics manufacturing
- Energy and industrial automation
Furthermore, this model aligns with broader EU ambitions to strengthen digital sovereignty and reduce dependency on foreign cloud providers.
Learn more about this initiative at www.telekom.com