Deutsche Telekom plans €250m Munich AI expansion, weighs EU bid

By James Calloway

Deutsche Telekom plans to spend close to €250 million (US$280 million) on a second phase of its Nvidia-backed AI factory in Munich. The expansion raises the Tucherpark site's total facility capacity to 20 megawatts.

Tucherpark 2 will add Nvidia B300 GPUs to the installed Blackwell B200 systems. It will retain Nvidia RTX Pro 6000 Blackwell Server Edition GPUs. DT said the B300 addition doubles its inventory of chips in that class across the operator.

What is DT building in Munich?

The project began with Tucherpark 1, the first DT and Nvidia AI factory, which went live in February 2026. DT framed the expansion around enterprise demand for high-performance AI infrastructure. Höttges said Tucherpark 2 represents the next stage and would fill the site's capacity.

At a press conference on Monday, November 9, DT CEO Timotheus Höttges said Tucherpark 3 was already in planning. He also said DT was working on building an AI gigafactory. Neither statement commits a site or budget for Tucherpark 3. The announcement gives no construction timetable.

T-Systems CEO Ferri Abolhassan said the first facility opened after three months, ahead of a six-month target. He also said it is now sold out. He described the operation as a stack covering connectivity, security, computing, foundation models, applications and consulting. He distinguished it from a conventional data center.

The sold-out description is DT's own account of commercial demand, not an independently disclosed booking figure. The announcement names no enterprise customers or contract values. Abolhassan said the first year's lesson concerned two issues: securing customers and making the investment pay. He also said the challenge was learning how to build the facility.

Abolhassan said DT chose Blackwell B200 and B300 GPUs rather than Nvidia's next-generation Vera Rubin systems. The reason was physical: Tucherpark's elevators are too small to transport Vera Rubin. Building capacity, not only ordering accelerators, therefore remains a practical constraint.

DT has yet to decide whether to join the EU's AI gigafactories program. Höttges said: "If we build it, we'll build it where we most want to build it – in Bavaria." The location preference does not settle the commercial structure. Several financing and procurement issues remain unresolved.

Why is the EU gigafactory decision unresolved?

The EU plans up to seven hyperscaler data centers across Europe. It launched the call for tender in July 2026. Winning bids are expected in early 2027, and DT aims to decide in December.

DT's assessment put effective utilization under the EU procurement framework at only 10–15%. Another rule would reserve 60% of capacity for public-sector use on short notice. Höttges said that requirement makes financing difficult for investors. He also said DT needs more committed customers and workable tender terms.

DT does not necessarily require a gigafactory for its own operations, Höttges said. He views one as strategically necessary for Germany, provided it can earn a return. Höttges argued that Europe needed to accelerate AI infrastructure construction.

He warned: "South Korea … is currently developing AI at a pace that gives us cause for concern. This year alone, this country is investing five times as much in AI as the whole of Europe put together."

What changes for enterprise customers?

For enterprise customers, the committed change is additional Blackwell capacity planned for Tucherpark. The offer spans connectivity, security, foundation models, applications and consulting. It is not yet a guarantee of capacity in a new European gigafactory. That outcome depends on DT's December decision and the terms of the EU tender.

DT's wider internal use of AI does not by itself establish external demand. DT reported the following results:

• AI handled 2.6 million customer calls in Germany in 2026.
• AI-assisted software development improved IT productivity by 35%.
• Around 83% of DT employees use AI tools daily.

DT's network applications include RAN Guardian, which analyzes network events and can automatically adjust components when conditions change. Abolhassan also described a Deutschland AG approach to German industry, citing Siemens and Daimler as examples.

The next milestones are limited and concrete. DT's December decision comes first, while EU winning bids are expected in early 2027. Delivery of Tucherpark 2's additional Blackwell capacity is the next deployment step. Tucherpark 3 and any EU gigafactory remain contingent on customer commitments, financing and workable procurement terms.