Europe’s manufacturing sector is preparing for a major leap forward as Germany takes the lead in hosting the continent’s most advanced industrial AI computing centre. Backed by 10,000 of Nvidia’s high-performance chips, the project is set to transform how factories design products, maintain machinery, and manage production lines.
A New Era of Manufacturing Intelligence
Unveiled at GTC Paris during VivaTech, Nvidia’s initiative is being described as more than just cloud computing. Company CEO Jensen Huang referred to the facility as an “AI factory,” highlighting its focus on manufacturing-specific challenges rather than consumer services. The aim is to give European industries access to processing power capable of running massive simulations and real-time factory operations that traditional cloud setups cannot easily handle.
Unlike conventional cloud infrastructure, which typically supports storage and general computing, this industrial cloud is tailored for highly complex tasks such as engineering simulations, predictive maintenance, and digital twin creation. The scale of power is staggering: with 10,000 GPUs, including the latest DGX B200 systems, manufacturers will be able to complete workloads in hours that once required weeks.
The Concept of ‘Two Factories’
Huang has often spoken about the need for manufacturers to operate “two factories”—one physical and one digital. The physical plant builds the products, while the digital counterpart generates the intelligence that makes production smarter and more efficient.
This approach allows companies to build detailed digital replicas of their operations. By experimenting in virtual environments, manufacturers can predict equipment failures, optimise logistics, and redesign workflows without interrupting real-world production. BMW, for instance, has already adopted Nvidia’s Omniverse platform to create full-scale digital twins of its facilities, enabling engineers across continents to collaborate seamlessly.
Early Adopters Show Results
The benefits of this technology are already evident. Volvo Cars reported a more than twofold speed increase in fluid simulations for its latest electric vehicle models by using Nvidia’s Blackwell GPUs. Schaeffler, a global supplier, has begun applying AI-driven automation across over 100 factories, while Mercedes-Benz uses Omniverse to fine-tune assembly lines before rolling out changes on the factory floor.
Building a Collaborative Ecosystem
Hardware alone is not enough to transform an industry. Nvidia has partnered with software leaders like Siemens, Ansys, and Cadence to ensure its AI infrastructure integrates into tools manufacturers already rely on. For example, Ansys is embedding Omniverse into its fluid simulation software, while Cadence has unveiled a supercomputing platform built on Nvidia’s CUDA-X libraries. These collaborations aim to make advanced AI capabilities accessible through familiar interfaces.
Why This Matters for Europe
Nvidia’s investment underscores Europe’s importance as a global manufacturing powerhouse. At a time when factories are under pressure to improve efficiency and compete with lower-cost regions, the facility provides an opportunity to maintain competitiveness through innovation rather than cost-cutting. By anchoring this project in Germany, Nvidia positions Europe as a serious player in the race toward AI-driven manufacturing.
Looking Ahead
While the promise is immense, challenges remain. Manufacturers must be prepared to invest in training and adapt workflows to take full advantage of the new resources. Data security and reliance on shared infrastructure are also key considerations.
Still, Nvidia sees this German hub as the starting point of a broader transformation. As Huang described, it is a launchpad for Europe’s future “AI gigafactories”—massive centres of intelligence designed to fuel industrial growth for decades to come.
