TLDR
- NVIDIA signed a €1 billion deal with Deutsche Telekom for an AI data center in Munich
- The facility will deploy 10,000 NVIDIA GPUs and launch in Q1 2026
- Germany’s AI computing capacity will increase by approximately 50%
- NVDA shares gained 2.17% on Monday, closing at $206.88
- The project supports the EU’s $215 billion AI development initiative
NVIDIA locked in a major European deal this week. The chip maker partnered with Deutsche Telekom for a €1 billion AI data center in Germany.
The facility will be located in Munich at a refurbished data center. Operations are scheduled to begin in the first quarter of 2026.
Deutsche Telekom will deploy approximately 10,000 NVIDIA graphics processing units at the site. These GPUs will power complex AI models for European businesses.
The German telecom company expects the project to boost the country’s AI computing power by 50%. That’s a substantial jump for Germany’s tech infrastructure.
NVIDIA CEO Jensen Huang announced the partnership at a Berlin event on Tuesday. Deutsche Telekom CEO Tim Höttges joined him along with executives from SAP and Deutsche Bank.
European AI Infrastructure Gets a Boost
The Munich data center aligns with the European Union’s massive AI push. The EU has committed $215 billion to AI development across member states.
Europe wants to triple its computing capacity in the coming years. The goal is to compete with AI infrastructure in the United States and Asia.
However, the EU’s funding process moves slowly. Projects are still working through approval stages.
The German facility is smaller than some global projects. A Texas data center planned by SoftBank, Oracle, and OpenAI will use 500,000 GPUs.
But size isn’t everything. The Munich project gives European companies local AI capabilities.
What This Deal Means for NVIDIA
This partnership strengthens NVIDIA’s European market position. The company continues to secure deals across the continent as AI demand grows.
SAP will contribute business software to the project. The software will help companies integrate AI into their existing systems.
For Deutsche Telekom, this represents a strategic shift. The company is expanding beyond traditional telecom into cloud computing services.
Local data centers offer advantages for European firms. Companies can maintain data security while meeting regional compliance requirements.
NVIDIA stock rose 2.17% on Monday to $206.88. Wall Street analysts maintain a Strong Buy rating on the stock.
Market Outlook
The average analyst price target for NVIDIA sits at $237.86. That suggests potential upside of nearly 15% from current prices.
NVIDIA continues adding AI infrastructure deals to its portfolio. The Munich project is one of many partnerships across Europe.
Deutsche Telekom will manage facility operations when the data center launches in early 2026. NVIDIA will supply the GPU hardware and technical support.
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