Deutsche Telekom (DT) is expanding its so-called AI factory in Tucherpark in Munich to meet what the telco framed as “strong demand for high-performance AI infrastructure” from enterprise customers.
According to DT CEO Timotheus Höttges, Tucherpark 1 was the first step and relates to the first DT and Nvidia AI factory that went live in February 2026. Tucherpark 2 represents the next stage at an additional cost of close to €250 million (US$280 million) and would fill the site’s capacity, Höttges said. (SeeDT and Nvidia’s AI factory to launch in early 2026 in Munich.)
The telco noted that Nvidia B300 GPUs will be added to existing Blackwell B200 systems, which it said “doubles the number of chips in this class” at DT, increasing total capacity at the facility to 20 megawatts. The AI factory will also continue to use Nvidia RTX Pro 6000 Blackwell Server Edition GPUs.
During a press conference on Monday (November 9), Höttges said Tucherpark 3 is already in the planning stage, and also noted that “we’re working on building [an AI] Gigafactory.” However, he emphasized that DT has still not made a final decision on whether or not to participate in the EU’s AI gigafactories project. (SeeDT has ‘not yet decided’ on EU gigafactory bid – CEOandDeutsche Telekom sharpens AI gigafactory focus with Schwarz – report.)
Under the scheme, the EU is seeking to establish up to sevenhyperscaler data centers across Europe.The call for tender was launched in July 2026, with the winning bids expected to be announced in early 2027.
Höttges indicated that DT will make a decision on the matter in December, although he noted that there are still many issues to resolve. “If we build it, we’ll build it where we most want to build it – in Bavaria,” he said.
He said key sticking points are that the EU procurement framework might ultimately deliver only 10–15% “effective utilization,” according to DT’s assessment, and that a requirement to reserve 60% of capacityfor public-sector use on short notice makes financing difficult for investors. He added that more committed customers and workable tender terms are needed.
Höttges further commented that DT did not necessarily need a gigafactory for itself, but regarded it as a strategic necessity for Germany, provided it could earn money from it.
Indeed, he said Europe needs to up its pace on building AI infrastructure. “South Korea … is currently developing AI at a pace that gives us cause for concern. This year alone, this country is investing five times as much in AI as the whole of Europe put together,” he said.
Building lessons
Ferri Abolhassan, CEO of DT’s enterprise services unit T-Systems, said the first facility opened after three months, ahead of the six-month target, and is now “sold out.” He described it not as a conventional data center but as a complete stack: connectivity, security, computing, foundation models, applications and consulting.
The key lesson from the first year, he said, was not just how to build a facility, but how to secure customers and make the investment pay.
The factory forms part of a broader strategy to put AI to work inside DT. The telco said AI handled 2.6 million customer calls in Germany in 2026, while AI-assisted software development improved IT productivity by 35%, and around 83% of employees use AI tools daily. It also pointed to network applications, including RAN Guardian, which analyzes network events and can automatically adjust components when conditions change.
DT’s strategy also includes closer cooperation across German industry – a “Deutschland AG” approach, as Abolhassan put it, citing cooperation with Siemens and Daimler as examples.
Abolhassan did concede that DT opted to install Blackwell 200/300 GPUs as opposed to the next-generation Nvidia Vera Rubin GPUs for largely practical reasons: the elevators in the Tucherpark facility are too small to transport them.
