Deutsche Telekom pours €250 million into Munich AI hub to add Nvidia Blackwell B300 chips

What Telekom is adding - and why it matters now

Deutsche Telekom is upgrading its Munich AI center with Nvidia's new Blackwell B300 chips, a move it says will expand the site's compute by about a quarter. The spend comes just months after the facility opened in February and sits on top of roughly €1 billion that Telekom and partners have already put into what they call Germany's first industrial AI factory.

CEO Tim Höttges summed up the market pull: "At the moment everyone wants the Blackwells - everyone," noting he could sell the same capacity six or seven times over. He also put a caution sign on the frenzy, saying "There's also a bit of hype right now," which is why the company is modeling for long run average use rather than today's surge.

Who needs the chips and how they are used

The site's nearly 10,000 processors power work like factory and truck simulations, robot training, and running AI models on proprietary industrial data. German manufacturers say they are already feeling the pinch from limited GPU access. Siemens CEO Roland Busch, whose company taps the Munich setup, said it still needs more graphics processing power, including for its semiconductor design tools.

Agile Robots SE in Munich is ready to take additional capacity. CEO Zhaopeng Chen said the company trains AI on Nvidia's high end Blackwell processors and uses RTX chips to model robot behavior before deploying in the real world. "It's much better to do this in simulation," he said, calling it "much more cost effective."

Capacity mix, costs, and the technical trade offs

Telekom originally built the cluster with a heavy tilt toward RTX Pro units - roughly three of those for every Blackwell - anticipating major demand for simulations, digital twins and robotics. Reality diverged: the Blackwell pool booked out within months, while RTX usage sat at around 40% in May. So the next step is targeted, not blanket: the new B300s will double the number of Blackwell class chips, while the larger RTX pool stays the same.

The draw of B300 is density. Operators can pack far more AI reasoning into the same footprint, but the chips also pull harder on power, cooling and high speed networking. Hardware inflation complicates the equation too.

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Project lead Andreas Falkner said some Nvidia gear now costs about three times what it did when initial orders were placed, and he expects the processors to be usable for roughly four to five years. With customers typically locking in for only one to two years as they size their needs, Telekom is also rolling out a more flexible pay as you go option that starts at €2,000 per month.

The bigger picture - and the investor angle

The Munich build is part of Germany's bet that industrial AI can leverage its manufacturing base after Europe lagged in consumer platforms and the first AI wave. Scale still favors the world's two largest economies, though. According to the European Commission, in 2025 the EU accounted for roughly 20% of the world's total installed data center capacity, while the US stood at 42%.

For your portfolio, the signal is selective scarcity. Blackwell is selling out while RTX idles, a reminder that not all compute is interchangeable and that pricing, energy and cooling needs can swing project economics. According to Siemens, tapping the Munich setup cuts the time Daimler Truck Holding AG needs to run aerodynamic work, taking a process that used to be around a week and trimming it to approximately one day. Telekom's move grows the highest demand tier now, while shorter contracts and a pay as you go lane leave room to recalibrate if the hype cools.

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