Nvidia $NVDA (+2,06%) and Deutsche Telekom $DTE (+0,74%) are preparing to launch a billion-euro initiative for a data center in Germany. This was reported by the Bloomberg news agency, citing sources familiar with the matter. The project is intended to meet the region's demand for computing capacity.
Europe's largest software group SAP $SAP (+0,56%) is expected to be the anchor tenant of the data center. The plans themselves have been known for some time, but no official announcement has yet been made.
An event in Berlin in November could be the occasion for the announcement. Deutsche Telekom CEO Tim Höttges, Nvidia CEO Jensen Huang, SAP CEO Christian Klein and Digital Minister Karsten Wildberger are expected to attend. The event is planned for Munich, a source said.
The project aims to develop regional AI capabilities. In the US market, companies such as Microsoft and Google have invested hundreds of billions of US dollars in AI infrastructure. Europe is lagging behind both US and Chinese competitors in this area.
》Europe's AI infrastructure offensive comparatively small《
Nvidia's management previously expressed concerns about Europe's pace in expanding its computing infrastructure. European companies are reaching their limits if they want to use AI systems and at the same time maintain data sovereignty within European borders.
The planned facility will use around 10,000 graphics processors - specialized chips that power AI systems. However, this dimension remains modest compared to projects elsewhere. A data center developed in the US state of Texas by Softbank, OpenAI and Oracle is designed for around 500,000 GPUs.
In February, the European Union presented a 200 billion euro plan to promote AI development in the member states. The initiative aims to triple the region's AI computing capacity over the next five to seven years. However, implementation of the plan is slower than expected.