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Munich, Germany – Deutsche Telekom announced a significant expansion of its industrial AI factory located in the Tucherpark district of Munich. The telecommunications giant is investing nearly 250 million euros to boost the facility’s performance to 20 megawatts, citing a surge in demand for high-performance computing power dedicated to industrial artificial intelligence applications.
Rapid Growth in AI Infrastructure
The company’s Industrial AI Cloud, which officially began operations in February 2026, reached full capacity just seven months after launch. According to Deutsche Telekom, the initial phase increased available AI computing capacity in Germany by 50 percent. Planning for subsequent expansion phases began as early as May 2026 to keep pace with the growing requirements of companies, startups, research institutions, and the public sector.
Advanced Hardware Upgrades
The expansion plan includes the integration of new, high-performance graphics processors. The existing Nvidia Blackwell B200 systems will be augmented with the newer Blackwell Ultra B300 generation. Deutsche Telekom expects this upgrade to double the number of chips in this high-performance class. Due to the increased efficiency of the new processors, the total computing power is projected to grow significantly more than the chip count itself.
These systems are designed to support complex tasks, including:
- Training and operation of large AI models.
- Complex industrial simulations.
- Development of digital twins for robotics and manufacturing.
Key Industry Partners
The infrastructure is already being utilized by major industry players, including Siemens and Daimler Truck. Other notable companies leveraging the Munich-based facility for robotics and simulation include Currenta, Agile Robots, and Wandelbots. Furthermore, the facility supports the training of “Soofi,” a large language model developed in Germany, with a strong focus on European standards for data security and control.
Beyond technical performance, the facility aims for high energy efficiency, reporting a Power Usage Effectiveness (PUE) of 1.2. Additionally, the waste heat generated by the AI factory is planned to support the heating requirements of the entire Tucherpark quarter.
Source: Retail-News.de
