# Deutsche Telekom Expands Munich AI Data Center Amid Rising Demand The company invests 250 million euros to scale infrastructure for advanced AI model training. - **Source:** [taz](https://taz.de) - **Published:** 2026-11-09 - **Topic:** [technology](https://brifing.si/c/technology) - **Original article:** - **On Brifing:** https://brifing.si/s/4a49fb7d-f33b-426f-aa95-32f6b9fcc4b6 ## Strategic Infrastructure Expansion Deutsche Telekom is expanding its Munich data center to accommodate surging demand for artificial intelligence infrastructure. T-Systems CEO Ferri Abolhassan confirmed that the first phase is fully utilized by major industrial clients like Siemens and Daimler Truck. This expansion marks a critical step in strengthening Germany's domestic digital computing capabilities for industry. ## Investment and Technical Scaling The project involves an additional investment of 250 million euros to enhance processing power. The facility's power requirements will nearly double to 20 megawatts to support the new infrastructure. These servers will be equipped with high-performance Nvidia Blackwell Ultra Generation B300 processors, specifically optimized for training complex artificial intelligence models efficiently. ## Rapid Capacity Utilization Telekom CEO Tim Höttges reported that the newly added computing capacities are already fully booked by clients. Due to this immediate demand, planning for a third expansion phase is already underway. The company intends to announce further developments in the coming months, signaling a rapid scaling strategy for their specialized cloud services. ## Vision for AI Gigafactories Höttges emphasized the company's ambition to build AI Gigafactories, which are large-scale data centers requiring triple-digit megawatt power levels. These facilities are designed to provide massive computing power for industrial applications. This vision aligns with broader efforts to establish high-performance computing hubs within Germany to support the national digital economy. ## Regulatory and Funding Challenges The European Commission aims to subsidize similar large-scale projects across Europe, but Telekom remains critical of current tender conditions. Höttges noted that the state-guaranteed minimum utilization is too low. Furthermore, requirements to reserve 60 percent of capacity for public institutions create significant idle costs, complicating the financial viability of these billion-euro investments. ## Historical Context of Facility The Munich data center was officially commissioned in February with an initial investment of one billion euros. It serves as a reference project for the company's broader AI strategy. The facility has already hosted significant projects, including the training of the German language model Soofi and supporting the operations of Agile Robots. ## Industrial AI Ecosystem Impact The facility functions as a central hub for Germany's industrial AI ecosystem. By providing specialized cloud infrastructure, it enables companies to develop and deploy robotics and language models locally. This reduces dependency on foreign cloud providers while ensuring that sensitive industrial data remains within the European regulatory framework for data security. ## Future Outlook and Scaling The ongoing expansion highlights the critical role of telecommunications providers in the AI value chain. As demand for high-performance computing continues to outpace supply, Telekom's ability to secure hardware and manage energy-intensive operations will determine its market position. Future success depends on balancing public sector requirements with the needs of industrial clients. ## Sources covering this story - https://taz.de/Digitale-Infrastruktur-in-Deutschland/!6228691/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._