Deutsche Telekom CEO Urges European Investment in AI and Data Centers to Compete Globally
3 Sources
3 Sources
[1]
Deutsche Telekom CEO calls on incoming German government, Europe to invest in AI
(Reuters) - The chief executive of Deutsche Telekom on Wednesday called on Germany's incoming government and Europe to take on more leadership in the development of artificial intelligence (AI) and data centres to compete with the U.S. and Asia. WHY IT'S IMPORTANT Chinese startup DeepSeek triggered a $1 trillion-plus sell-off in global equities markets last month when it unveiled a cut-price AI reasoning model that outperformed many Western competitors and is now rushing to launch a new AI model, according to three sources. Telekom CEO Tim Hoettges said he expected demand for data centres to increase by at least 30% in Europe, despite the advancement of programmes such as DeepSeek that make do with less computing power. Deutsche Telekom is investing into data centres and is in the process of building four of them in Europe, aiming to build up to one gigawatt of infrastructure, he said. KEY QUOTES "We need data centres in Europe and in Germany," Hoettges said at the German telecom giant's press call after publication of its annual results earlier on Wednesday. "We simply have to realize that Europe is in competition with America and Asia and we can't rely on there being a rich uncle somewhere who will supply us accordingly," Hoettges said. "More computing power is a must-have for the future growth of our economy and it is a must for Europe's sovereignty that it needs in the digital age. We will make our contribution," he added. CONTEXT Earlier in February, European politicians met with the technology sector in Paris to discuss the development of AI. At the AI summit, European Commission President Ursula von der Leyen announced an aim of mobilising 200 billion euros ($210 billion) in private and public funding to expand Europe's AI infrastructure, committing 50 billion euros of funding from the European Union. That goal compares to up to $500 billion of U.S. private sector investments in AI infrastructure announced by President Donald Trump last month. (Reporting by Hakan Ersen in Frankfurt and Marleen Kaesebier in Gdansk; Editing by Milla Nissi)
[2]
Deutsche Telekom CEO Calls on Incoming German Government, Europe to Invest in AI
(Reuters) - The chief executive of Deutsche Telekom on Wednesday called on Germany's incoming government and Europe to take on more leadership in the development of artificial intelligence (AI) and data centres to compete with the U.S. and Asia. WHY IT'S IMPORTANT Chinese startup DeepSeek triggered a $1 trillion-plus sell-off in global equities markets last month when it unveiled a cut-price AI reasoning model that outperformed many Western competitors and is now rushing to launch a new AI model, according to three sources. Telekom CEO Tim Hoettges said he expected demand for data centres to increase by at least 30% in Europe, despite the advancement of programmes such as DeepSeek that make do with less computing power. Deutsche Telekom is investing into data centres and is in the process of building four of them in Europe, aiming to build up to one gigawatt of infrastructure, he said. KEY QUOTES "We need data centres in Europe and in Germany," Hoettges said at the German telecom giant's press call after publication of its annual results earlier on Wednesday. "We simply have to realize that Europe is in competition with America and Asia and we can't rely on there being a rich uncle somewhere who will supply us accordingly," Hoettges said. "More computing power is a must-have for the future growth of our economy and it is a must for Europe's sovereignty that it needs in the digital age. We will make our contribution," he added. CONTEXT Earlier in February, European politicians met with the technology sector in Paris to discuss the development of AI. At the AI summit, European Commission President Ursula von der Leyen announced an aim of mobilising 200 billion euros ($210 billion) in private and public funding to expand Europe's AI infrastructure, committing 50 billion euros of funding from the European Union. That goal compares to up to $500 billion of U.S. private sector investments in AI infrastructure announced by President Donald Trump last month. ($1 = 0.9535 euros) (Reporting by Hakan Ersen in Frankfurt and Marleen Kaesebier in Gdansk; Editing by Milla Nissi)
[3]
Deutsche Telekom CEO calls on incoming German government, Europe to invest in AI
Feb 26 (Reuters) - The chief executive of Deutsche Telekom (DTEGn.DE), opens new tab on Wednesday called on Germany's incoming government and Europe to take on more leadership in the development of artificial intelligence (AI) and data centres to compete with the U.S. and Asia. WHY IT'S IMPORTANT Chinese startup DeepSeek triggered a $1 trillion-plus sell-off in global equities markets last month when it unveiled a cut-price AI reasoning model that outperformed many Western competitors and is now rushing to launch a new AI model, according to three sources. Telekom CEO Tim Hoettges said he expected demand for data centres to increase by at least 30% in Europe, despite the advancement of programmes such as DeepSeek that make do with less computing power. Deutsche Telekom is investing into data centres and is in the process of building four of them in Europe, aiming to build up to one gigawatt of infrastructure, he said. KEY QUOTES "We need data centres in Europe and in Germany," Hoettges said at the German telecom giant's press call after publication of its annual results earlier on Wednesday. "We simply have to realize that Europe is in competition with America and Asia and we can't rely on there being a rich uncle somewhere who will supply us accordingly," Hoettges said. "More computing power is a must-have for the future growth of our economy and it is a must for Europe's sovereignty that it needs in the digital age. We will make our contribution," he added. CONTEXT Earlier in February, European politicians met with the technology sector in Paris to discuss the development of AI. At the AI summit, European Commission President Ursula von der Leyen announced an aim of mobilising 200 billion euros ($210 billion) in private and public funding to expand Europe's AI infrastructure, committing 50 billion euros of funding from the European Union. That goal compares to up to $500 billion of U.S. private sector investments in AI infrastructure announced by President Donald Trump last month. ($1 = 0.9535 euros) Reporting by Hakan Ersen in Frankfurt and Marleen Kaesebier in Gdansk; Editing by Milla Nissi Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Artificial Intelligence
Share
Share
Copy Link
Deutsche Telekom's CEO calls for increased European investment in AI and data centers to compete with the US and Asia, highlighting the need for digital sovereignty and economic growth.
Deutsche Telekom CEO Advocates for European AI Investment
Tim Hoettges, CEO of Deutsche Telekom, has issued a call to action for Germany's incoming government and Europe as a whole to take a more proactive role in the development of artificial intelligence (AI) and data centers. This appeal comes as part of a broader effort to enhance Europe's competitiveness against the United States and Asia in the rapidly evolving field of AI technology
1
2
3
.The Urgency of AI Investment
Hoettges emphasized the critical need for increased investment in AI infrastructure, particularly in light of recent developments in the global AI landscape. He pointed out that despite advancements in AI models that require less computing power, such as those developed by Chinese startup DeepSeek, the demand for data centers in Europe is expected to grow by at least 30%
1
2
3
.The urgency of this call is underscored by recent events in the AI sector:
- DeepSeek's AI model caused a significant market reaction, triggering a $1 trillion-plus sell-off in global equities markets
1
2
3
. - The company is reportedly rushing to launch a new AI model, further intensifying the competitive landscape
1
2
3
.
Deutsche Telekom's Commitment to AI Infrastructure
In response to these challenges, Deutsche Telekom is taking concrete steps to bolster Europe's AI capabilities:
- The company is investing in data centers across Europe
1
2
3
. - Four new data centers are currently under construction
1
2
3
. - Deutsche Telekom aims to build up to one gigawatt of infrastructure
1
2
3
.
Hoettges stated, "More computing power is a must-have for the future growth of our economy and it is a must for Europe's sovereignty that it needs in the digital age. We will make our contribution"
1
2
3
.Related Stories
European Initiatives and Global Competition
The call for increased investment aligns with recent European efforts to boost AI development:
- European politicians and tech sector leaders met in Paris to discuss AI development
1
2
3
. - European Commission President Ursula von der Leyen announced plans to mobilize 200 billion euros ($210 billion) in private and public funding for AI infrastructure
1
2
3
. - The EU has committed 50 billion euros to this initiative
1
2
3
.
However, these efforts are dwarfed by investments in other regions:
- The United States has announced up to $500 billion in private sector investments for AI infrastructure
1
2
3
.
Hoettges emphasized the competitive nature of the global AI race, stating, "We simply have to realize that Europe is in competition with America and Asia and we can't rely on there being a rich uncle somewhere who will supply us accordingly"
1
2
3
.Implications for European Digital Sovereignty
The push for increased AI investment is not just about economic competitiveness but also about ensuring Europe's digital sovereignty. By developing robust AI capabilities and infrastructure within Europe, the continent aims to reduce its dependence on foreign technologies and maintain control over its digital future
1
2
3
.As the global AI landscape continues to evolve rapidly, the actions taken by European governments and companies like Deutsche Telekom in the coming months and years will likely play a crucial role in shaping the continent's position in the global AI ecosystem.
References
Summarized by
Navi
[2]
U.S. News & World Report
|Deutsche Telekom CEO Calls on Incoming German Government, Europe to Invest in AI
Related Stories
Trump's $500 Billion AI Venture Sparks European Calls for Competitive Investment
24 Jan 2025•Business and Economy
NVIDIA and Deutsche Telekom Partner to Build World's First Industrial AI Cloud in Germany
11 Jun 2025•Technology
Deutsche Telekom Leverages AI for Accelerated Growth and Cost Reduction
10 Oct 2024•Business and Economy
Weekly Highlights
Weekly Highlights
Explore today's top stories
Your Daily Dose of Curated AI News
Don’t drown in AI news. We cut through the noise - filtering, ranking and summarizing the most important AI news, breakthroughs and research daily. Spend less time searching for the latest in AI and get straight to action.
