Deutsche Telekom, Ionos, and Schwarz Group Submit Rival Bids
Three leading German technology firms—Deutsche Telekom, Ionos, and the Schwarz Group's IT subsidiary—are submitting separate bids to secure European Union funding for the development of a large-scale AI data center, also known as an AI Gigafactory. This competition is part of a major EU initiative to bolster the continent’s position in advanced artificial intelligence infrastructure and reduce reliance on non-European providers[1][4][5].
Consortium Approach and Industry Ambitions
Amid urgent calls for technological sovereignty, Deutsche Telekom is forming a consortium with partners such as web hosting provider Ionos, software giant SAP, and retail heavyweight Schwarz Group. Their aim is to apply for a share of up to €20 billion in European Commission funding intended for the creation of up to five AI Gigafactories across Europe. These planned facilities are envisioned to feature approximately 100,000 high-performance AI chips—four times the capacity of existing setups[4][5].
The collaboration was revealed during the recent Technology Experience Convention Heilbronn, where executives emphasized the importance of rapid, collaborative action to secure Europe’s global competitiveness in AI.
NVIDIA Partnership for Industrial AI
Deutsche Telekom has also announced a partnership with NVIDIA to build what will be the world’s first industrial AI cloud dedicated to European manufacturing. This ambitious infrastructure will be implemented by 2026 and feature 10,000 chips via NVIDIA DGX B200 systems and RTX Pro Servers, running advanced workloads such as CUDA-X, RTX, and Omniverse. The infrastructure will be operated, secured, and maintained by Deutsche Telekom to ensure compliance with European data protection standards and values[2].
Key Points:
- German tech leaders Deutsche Telekom, Ionos, and Schwarz Group are submitting competing EU bids for an AI Gigafactory[1].
- Deutsche Telekom is forming a consortium with Ionos, SAP, and Schwarz Group to increase their chances of receiving funding[3][4].
- The AI Gigafactory initiative is a response to the need for European independence from non-EU providers in AI, cloud, and data services[5].
- The upcoming facilities are expected to incorporate tens of thousands of AI chips, dramatically expanding Europe’s AI capacity.
- Deutsche Telekom will partner with NVIDIA to create Europe's first industrial AI cloud, designed to support manufacturing and ensure sovereignty in sensitive data management[2].
Looking Ahead
The window for submitting applications to the European Commission closes on June 20. Stakeholders emphasize that quick and decisive action is essential to secure Europe’s technological future in AI. The outcome of these bids will play a pivotal role in determining how Europe advances its capabilities in artificial intelligence and data sovereignty[5].
