Europe is stepping up its AI game — and Germany is leading the charge. Nvidia and Deutsche Telekom have announced plans to build a massive €1 billion data centre in Munich, one of Europe’s largest AI infrastructure projects to date.

Set to go live in early 2026, the facility will boost Germany’s AI computing power by about 50%. It will also expand Deutsche Telekom’s existing site in Munich. The project will use around 10,000 Nvidia GPUs. Its aim is to fuel Europe’s push for homegrown AI capabilities to compete with the US and China.

Nvidia CEO Jensen Huang called it “a new era of Germany’s industrial transformation.” He highlighted how the project brings cutting-edge AI and robotics to Europe’s biggest economy.

SAP will provide its business technology platform and applications for the new hub. At the same time, top German leaders — including executives from SAP and Deutsche Bank — joined the Berlin announcement. This underscores the government’s focus on developing a self-reliant AI ecosystem.

Still, the scale of Europe’s investment remains modest compared to the US. Projects like the upcoming Texas AI hub by SoftBank, OpenAI, and Oracle will use about 500,000 GPUs. That’s 50 times as many as the German facility.

The move aligns with the EU’s €200 billion plan to triple AI capacity across the bloc in the next five to seven years. This is a sign that Europe is finally ready to turn ambition into infrastructure.

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