European & Global Tech Giants Announce Industrial AI Cloud to Power Europe’s Digital Sovereignty

A coalition of European and global partners today launched the “Industrial AI Cloud project”, a landmark initiative aimed at bolstering digital sovereignty and enabling advanced AI in European industry.

The project brings together organisations including Deutsche Telekom, NVIDIA Corporation, Siemens AG, Deutsche Bank AG, Perplexity AI, PhysicsX GmbH, and Agile Robots GmbH.

At the heart of the initiative is an initial partnership between Deutsche Telekom and NVIDIA with a planned investment of around €1 billion.

“We have to build a stack here in Germany which is enabling our industry to participate in this next-generation evolution of industrialization,” Deutsche Telekom CEO Tim Höttges said.

The first phase will see Deutsche Telekom expand its Munich data centre with new AI infrastructure and NVIDIA GPUs by early 2026, providing high-performance services to companies across Germany and Europe.

“These computers, are the modern versions of factories,” NVIDIA founder and CEO Jensen Huang said. “These are factories, just like factories of cars and all the industrial factories of Germany, these are factories of intelligence.”

SAP will supply the technology layer via its Business Technology Platform, augmented with AI and simulation capabilities.

SAP CEO Christian Klein emphasised the dual objective of security and collaboration. “We will not achieve digital sovereignty by isolating ourselves, but by bringing the best technologies to Europe together with strong partners, while retaining control over our data,” he said in a blog post.

The Industrial AI Cloud is designed to fill a critical gap in Europe’s AI landscape, enabling seamless deployment of AI solutions across industrial, public-sector and regulated environments. It underlines Europe’s ambition to lead in industrial AI and safeguard data sovereignty while unlocking innovation.