Deutsche Telekom Spends Nearly €250 Million to Expand Munich AI Factory to 20MW

Chief executive Tim Höttges announced the expansion at a press conference in Munich, with Germany's federal ministers for digital affairs and for economic affairs. Telekom said in its release that the first stage of the facility, which it calls the Industrial AI Cloud, had raised Germany's available AI computing capacity by 50% and was fully booked about seven months after it went live. The company said it began planning more capacity in May.

The investment gives the clearest sign yet that European demand for locally hosted AI computing is outrunning supply. Telekom is selling the site to industrial companies that want to train models, run simulations and build digital twins under European data protection and security rules rather than on US hyperscale clouds. "Germany must not only be a user of AI; it must also create value and prosperity itself," Höttges said.

The new B300 systems will sit alongside the Nvidia Blackwell B200 systems already installed at the Tucherpark site. Telekom said this doubles the number of chips it runs in that class, and that the site's RTX PRO 6000 Blackwell Server Edition GPUs will stay in service. The release does not give a total GPU count or say when the new capacity will come online. Economy minister Katherina Reiche, quoted in the release, said Telekom was doubling capacity to "20,000 graphics processing units." Some trade outlets have described the compute increase as a doubling and others as smaller, and Telekom has not published a precise figure.

Customers named by Telekom include Siemens, Synopsys, Currenta, Agile Robots, Wandelbots, PhysicsX, Noxtua and EDAG. Soofi, a German-language model project, is training on the infrastructure. Ferri Abolhassan, who runs Telekom's T-Systems unit, also named Daimler Truck as a user. "The first expansion stage is at capacity," Abolhassan said.

Telekom said the facility runs at a power usage effectiveness of 1.2, meaning it draws less than 1.2 kilowatt-hours of total electricity for every kilowatt-hour used by the computing equipment. It said waste heat from the site will be used to supply the whole Tucherpark district.

At 20MW, the Munich site is still small next to the multi-hundred-megawatt campuses being built in the US and the Gulf. But it has become Germany's main showcase for sovereign industrial AI, and its fast take-up gives Telekom an argument for building more. The company said it is exploring a further commitment in Bavaria, but has not made an investment decision. That decision will depend on financial conditions, financing and economic viability, it said.

Siemens chief executive Roland Busch, who appeared at the announcement, called industrial AI "the opportunity of the century." Digital minister Karsten Wildberger said: "Telekom thinks big and acts fast."

The expansion also brings new chip suppliers into the site. Sparxity, a Dresden-based maker of sparse-computing hardware that announced new funding the same day, said it has a partnership to bring its systems into T-Systems' data centre infrastructure. Abolhassan said Telekom looks forward to having Sparxity in its AI factory soon.