Tim Hoettges, the CEO of Deutsche Telekom, has called on Germany’s incoming government and Europe to take a leading role in the development of artificial intelligence (AI) and data centers to compete with the U.S. and Asia.
Recently, Chinese startup DeepSeek caused a significant sell-off in global equities markets by introducing an affordable AI reasoning model that surpassed many Western competitors. DeepSeek is now rushing to release a new AI model. Hoettges predicts a 30% increase in demand for data centers in Europe, even with advancements in programs like DeepSeek that utilize less computing power. Deutsche Telekom is investing in data centers and is currently constructing four in Europe, aiming for up to one gigawatt of infrastructure.
“We need data centers in Europe and in Germany,” Hoettges said during a press call following the release of Deutsche Telekom’s annual results. “Europe is in competition with America and Asia, and we can’t rely on external sources for our needs.” “More computing power is essential for the future growth of our economy and for Europe’s sovereignty in the digital age. We will make our contribution,” he added.
Earlier this February, European politicians met with the tech sector in Paris to discuss AI development. At the AI summit, European Commission President Ursula von der Leyen announced a plan to mobilize €200 billion ($210 billion) in private and public funding to expand Europe’s AI infrastructure, committing €50 billion from the European Union. This initiative contrasts with the up to $500 billion in U.S. private sector investments in AI infrastructure announced by President Donald Trump last month.