Nvidia and Deutsche Telecom have officially announced a data center project in Munich, Germany.

This confirms earlier reports that the companies’ ‘industrial AI cloud’ venture would be located in the Bavarian capital city.

Nvidia will provide more than one thousand DGX B200 systems and RTX Pro servers with up to 10,000 Blackwell GPUs to a data center in Munich, which will be repurposed for use and begin operating in the first quarter of 2026.

This will offer 500 petaflops of compute. It is unclear what benchmark is being referred to. Typically, while AI performance is measured in FP8, traditional compute performance is measured in double-precision calculations, also known as FP64 – the industry standard for large systems.

As a result, a system boasting 100 petaflops of FP64 performance is more powerful than a system that has achieved 100 petaflops of FP8 performance, for example.

The “several thousand square meter” facility will be managed by Deutsche Telecom, and enterprise software company SAP will provide its Business Technology Platform and its applications. European data center business Polarise will also be involved with the project.

The idea is to allow organizations in Germany and Europe to develop, train, and use AI specifically for manufacturing applications. Around ten companies have already signed on to use the offering, including tech giant Siemens, robotics company Agile Robots, drone company Quantum Systems, and AI browser startup Perplexity.

Agile Robots’ H10-W robot will allegedly be used to install server racks at the Munich facility.

Plans for the world’s first ‘industrial AI cloud’ were announced as part of Deutsche Telecom’s second quarter earnings in August 2025. The company currently offers 390MW of capacity across its 184 data centers, some of which it owns and some of which it leases from others.

Munich is a prominent secondary market in Germany. A May 2024 market report by data center research firm DC Byte states that the city is the country’s third-largest market by capacity, behind Frankfurt and Berlin.