Deutsche Telekom doubles AI computing power in Munich with about €250 million

Expansion after rapid uptake

Deutsche Telekom is expanding its AI data center in Munich's Tucherpark, roughly doubling its computing capacity. The company is investing about €250 million, and the facility's power rises from 10 to 20 megawatts. Officials and executives gathered at the company's Munich innovation center for the announcement on Monday, 9 November, including Economy Minister Katherina Reiche, Digital Minister Karsten Wildberger, Bavarian Minister-President Markus Söder and Siemens CEO Roland Busch. The added servers use Nvidia's Blackwell Ultra B300 processors, which are optimized for training AI models, and RTX Pro 6000 chips will remain in use.

Before expansion10

After expansion20

Before expansion

10 MW

After expansion

20 MW

Data from the article text

Demand and the Munich timeline

The first stage of the Industrial AI Cloud is already fully booked, according to Telekom. Among its users are Siemens and Daimler Truck, and Agile Robots, a Munich maker of AI-driven robots, was among the first customers. Ferri Abolhassan, who heads the Telekom subsidiary T-Systems, said on Monday that a well-filled project pipeline points to further demand. The facility went into operation in February after six months of conversion work, and its original investment was one billion euros. Seven months after that opening, the facility was fully booked, which led Telekom to begin planning further expansion stages in May.

Political backing and the US debate

Wildberger used the event to call for determination, saying the following:

“Team No finds reasons, Team Yes finds answers and solutions. Today here in Munich is a strong commitment to Team Yes.”

Reiche argued that the next wave of AI would change how factories produce, and that Germany must combine its long-built industrial expertise with AI. Putting the case for infrastructure in one sentence, she said:

“Computing power is the location factor of our time.”

Reiche also urged that legitimate local concerns about new large facilities should not turn into blanket opposition, citing the recent US midterm elections. There, data center expansion became a campaign issue after residents across party lines protested the electricity and water use of AI facilities, and many municipalities imposed moratoriums or building conditions. Söder praised the project as an investment without public funds and criticized what he called 'Angstkultur' and bureaucratic hurdles, while pointing to Bavaria as a leading site for deep tech and research.

Energy use and open questions

Telekom says the facility needs less than 1.2 kilowatt-hours of electricity, including cooling and other infrastructure, for each kilowatt-hour of IT consumption. The company also plans to use the waste heat to supply the entire Tucherpark quarter. Telekom chief executive Tim Höttges said Germany must not only use AI but create its own value:

“Germany must not only be a user of AI, but must itself create added value and prosperity.”

Telekom is examining a wider expansion of its commitment in Bavaria, but no final decision has been made, and it depends on sound financial conditions. Wildberger also said chips from the Dresden start-up Sparxity should be used in future to strengthen technological sovereignty.