Deutsche Telekom adds €250m to Munich AI data centre

By Elena Vasquez

Deutsche Telekom will invest €250 million to double the Nvidia GPU count at its Munich AI Factory, lifting its stated capacity target to 20MW after the initial site reached capacity. The expansion will add B300 Blackwell Ultra Generation GPUs to B200 systems already operating at the industrial AI data centre in Germany.

The facility opened in February following an original €1 billion commitment, making the new outlay equal to one quarter of its opening investment. Commercial evidence extends beyond Deutsche Telekom's general claim of strong demand.

Siemens and Daimler Truck have used the site, and T-Systems CEO and Deutsche Telekom board member Ferri Abolhassan said it is now “at capacity.” Abolhassan also stated that a strong project pipeline indicates further demand.

He said the next phase would shift AI computing capacity in Germany from pilot projects to broad industrial deployment. The announcement gives no pipeline size or customer contract values.

What can customers run at the factory?

Deutsche Telekom says industrial players can use the facility to model physical AI activities and train models. Its users include companies of various sizes, research organisations and public-sector bodies, according to the operator.

The company named only Siemens and Daimler Truck, so the mix of smaller businesses, research groups and public-sector users remains a description rather than a disclosed customer breakdown. No user count or utilisation figure appears in the announcement.

That distinction separates present activity from future scale. The first site is operating and reportedly full; the expansion, doubled chip count and 20MW target describe what Deutsche Telekom intends to build next.

Deutsche Telekom and T-Systems, rather than Nvidia, make the operational and investment claims in the announcement. Named users and the at-capacity statement describe current use, while 20MW, broad industrial deployment and Bavarian expansion remain forward-looking plans.

Why are German ministers involved?

German officials praised the speed of Deutsche Telekom's work as they argued for faster industrial adoption of AI. Digital Affairs and State Modernisation Minister Karsten Wildberger said: “This is exactly the mindset and pace we need to win the AI race for Germany and Europe.”

Wildberger noted that the expansion announcement came roughly a year after Deutsche Telekom revealed the data centre plan. Katherina Reiche, Minister for Economic Affairs and Energy, said Germany has a competitive advantage in AI through process expertise built over decades.

Their comments place the project within the government's industrial policy priorities. However, the announcement sets out no new regulatory deadline, subsidy or technical standard, leaving the timetable framed around company investment rather than a specified policy schedule.

What could follow in Bavaria?

Deutsche Telekom says the Munich expansion could lead to deeper investment in Bavaria. Talks with potential partners are at an intensive stage, but the operator says any agreements depend on financial conditions and the viability of the economic model.

No partner, site or investment amount has been confirmed for that regional expansion. The €250 million therefore remains tied to the Munich project, while wider Bavarian plans have progressed as discussions rather than commitments.

The commercial test is specific: Deutsche Telekom must turn its project pipeline into deployments at the enlarged site, then show that operating economics support further investment. The next phase will determine whether the 20MW target becomes usable capacity and whether the intensive partner talks produce projects beyond Munich.