Deutsche Telekom is putting nearly €250 million into expanding its Munich AI factory at Tucherpark, adding NVIDIA Blackwell Ultra B300 GPUs and bringing the site to its planned 20-megawatt capacity.

The expansion follows strong demand: the first stage of the Industrial AI Cloud opened in February and was fully booked within seven months, prompting Telekom to begin planning the next phase in May.

The project is being presented as a way to move AI beyond pilots into industrial use and strengthen Germany’s and Europe’s technological capacity and competitiveness.

The Industrial AI Cloud supports industrial AI, robotics, production simulations and language-model training for customers including Siemens, Daimler Truck, Currenta and Agile Robots.

It will also support physical AI by letting companies test robots, products and production processes in virtual environments before deploying them in the real world.

Deutsche Telekom says the computing power could cut some simulations that currently take weeks or months to just a few hours, while contributing to digital sovereignty in Germany and Europe.

The company says the infrastructure meets European requirements for data protection, security and control of data, and is being used to train Soofi, a language model developed in Germany.

The Munich facility reports a power usage effectiveness value of 1.2, and its waste heat is intended to supply the Tucherpark district.

Telekom says the data center runs entirely on renewable energy and uses water from the nearby Eisbach for cooling.

Katherina Reiche said secure, sovereign and affordable computing capacity can combine with Germany’s industrial expertise to strengthen competitiveness and improve factory production.

Karsten Wildberger called for faster decisions, investment and implementation, along with simpler regulation, to help Germany and Europe compete with the United States and China.

Markus Söder praised the investment for proceeding without public funding and criticized what he described as a culture of fear and bureaucratic obstacles.