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Germany is lagging behind in AI development. Together with Deutsche Telekom, the US company Nvidia wants to set up an AI data center. CEO Huang promised at the meeting with Chancellor Merz that it would be specifically geared towards the needs of local industry.
(13.06.2025, 14:10)
Deutsche Telekom is building an AI data center for European industry in Germany in collaboration with chip manufacturer Nvidia. "We must seize the opportunities offered by artificial intelligence (AI), revolutionize our industry and secure a leading position in the global technology competition," said Deutsche Telekom CEO Tim Höttges (62) on Friday. "Our economic success depends on quick decisions and collaborative innovation."
The project paves the way for the planned AI gigafactories. Five of these particularly powerful data centers are to be built in the European Union (EU). A few weeks ago, it was announced that Deutsche Telekom, together with SAP, the web host and cloud provider Ionos, wanted to bid for the construction of such a facility.
Schaeffler and Siemens also intensify cooperation
Nvidia will reportedly supply at least 10,000 AI processors from the currently most powerful "Blackwell" series for the announced industrial AI cloud. The additional computing power should be ready for use in 2026. "This infrastructure will not only be available to the market for industrial applications, but will also be specifically made accessible to start-ups and research institutions," Telekom emphasized.
On Thursday, automotive supplier Schaeffler announced an in-depth cooperation with Nvidia; with the help of Nvidia, Schaeffler intends to map all elements of its production, which will be integrated and simulated as digital twins.
Siemens is also intensifying its cooperation with Nvidia. The main aim is to make factories more efficient with digital solutions. The factories are recreated on the computer and then specifically optimized in the real world. "Together, Siemens and NVIDIA are enabling companies from all industries to fully exploit the scalable potential of AI in the physical world," said Siemens CEO Roland Busch (60).
"In the age of AI, every manufacturer needs two factories: one to make things and one to create the intelligence that powers them," said Nvidia CEO Jensen Huang (62), according to the Telekom press release.
Nvidia boss Huang meets Friedrich Merz
Huang met with German Chancellor Friedrich Merz (69) on Friday to discuss cooperation in building a sovereign AI infrastructure. The US company will work with partners to build data centers specifically tailored to the needs of German industry, the German government subsequently announced.
According to the consulting firm Deloitte, Germany must invest up to 60 billion euros in the expansion of AI data centers over the next five years and triple its domestic computing capacity in order to remain economically competitive and maintain its technological sovereignty.
However, the construction costs for new facilities would be significantly higher than in other European countries. "In addition, electricity prices in Germany are almost twice as high as in the USA, and they account for up to 60 percent of the total operating costs of a data center."
