Deutsche Telekom Doubles Down on Munich AI Campus as Höttges Courts Berlin on T-Mobile US

Deutsche Telekom is pouring close to another quarter of a billion euros into its AI factory in Munich's Tucherpark, the Bonn-based group said, with the first phase of the build-out already fully booked. Additional NVIDIA Blackwell Ultra systems are set to lift capacity at the site to 20 megawatts.

The expansion was unveiled alongside a Munich press conference on AI infrastructure billed under the banner "AI Factory 2.0: More digital sovereignty for customers in Germany and Europe" — a theme that places the emphasis squarely on where the computing power sits and who controls it.

Bavaria expansion under review, no final call yet

Beyond Tucherpark, the company is weighing a further extension elsewhere in Bavaria, though no final investment decision has been taken. The disclosure came the same day as the Munich event, which framed the investment around infrastructure serving customers across Germany and Europe.

Energy efficiency runs through much of Telekom's recent dealmaking. Roughly a week before the Tucherpark announcement, T-Systems signed a letter of intent with Sparxity to collaborate on power-thrifty AI computing infrastructure. The plan covers integrating and validating Sparxity's AI chips and computing systems inside Telekom data centers, with the next chip generation targeted for introduction in 2028. The partners intend to hammer out the finer points over the coming months.

A digital euro mandate for T-Systems and Nexi

Telekom's infrastructure ambitions stretch beyond AI. On October 30 the European Central Bank named Deutsche Telekom Business Solutions and Nexi Payments as the joint network service provider for the digital euro. The contract with the top-ranked bidder took effect on September 28 and is designed initially to support the pilot phase.

Agent-based AI is another front where T-Systems is teaming up. On October 28 it agreed with Banco Sabadell to jointly expand the use of agentic AI across the Spanish lender's group.

Fifteenth straight network-test win

On the consumer side, Telekom reported on Friday its 15th consecutive victory in the Computer-BILD mobile network test, claiming the lead over rivals on both availability and speed in its 5G network.

At group level, attention is fixed on Brussels and Berlin as much as on Munich. According to a Saturday media report, chief executive Tim Höttges played down the competitive threat from SpaceX's planned Starlink mobile offering, arguing that a viable network demands on-the-ground presence and substantial capital. His deeper concern, the report suggested, is a shift in the communications business model itself — he drew a parallel with the upheaval Tesla unleashed in the auto industry, pointing to structural change rather than merely a rival network being built.

Handelsblatt reported on Wednesday, citing four insiders, that Höttges is lobbying Chancellor Friedrich Merz and the federal government for backing on a combination of Deutsche Telekom with T-Mobile US. Investors will get the next hard numbers on February 25, 2027, when the group publishes fourth-quarter and full-year 2026 results.