SAP bets big on European cloud sovereignty to fuel AI autonomy

SAP has announced a substantial investment of over €20 billion in its sovereign cloud infrastructure across Europe over the next decade, a move designed to reinforce digital sovereignty and support the continent’s AI innovation. This investment aligns with the growing emphasis on data localization, regulatory compliance, and technological autonomy, particularly in the context of evolving European data protection regulations such as the General Data Protection Regulation (GDPR) and the upcoming AI Act.

The company is expanding its SAP Sovereign Cloud portfolio with new deployment models, including SAP Cloud Infrastructure and SAP Sovereign Cloud On-Site. These solutions provide customers with the flexibility to tailor cloud environments to their regulatory and operational needs. SAP Cloud Infrastructure, developed and operated using open-source technologies within SAP’s European data center network, ensures data is stored exclusively within the EU. Meanwhile, SAP Sovereign Cloud On-Site allows customers to operate SAP infrastructure within their own or selected data centers, offering the highest level of sovereignty and security.

SAP is also leveraging Delos Cloud, a secure and sovereign cloud solution available in Germany, to support public sector transformation. This offering is tailored to meet country-specific sovereignty requirements and provides a platform for rapid digital transformation. Thomas Saueressig, SAP’s Member of the Executive Board, emphasized that innovation and sovereignty must be integrated rather than treated as separate entities, particularly in AI-driven environments.

The company’s long-term investment underscores its commitment to supporting Europe’s digital resilience and technological autonomy. With the expanded SAP Sovereign Cloud offering, customers can access a full range of cloud innovations and AI capabilities while ensuring compliance with local laws and maintaining infrastructure control. SAP has already integrated these capabilities into its existing software suite, including the SAP Business Suite, and is continuously enhancing its SAP Business Technology Platform and embedded AI tools.

In addition to its direct investment, SAP is actively participating in the EU’s broader AI strategy, including the development of new "AI gigafactories" equipped with advanced supercomputing infrastructure. Although SAP will not lead the initiative, its involvement reflects its strategic alignment with European Union efforts to bolster AI capacity and digital sovereignty.

This move positions SAP as a key player in the European cloud market, where major tech firms such as Amazon and Microsoft are also expanding their sovereign cloud offerings. The European Commission has prioritized AI development and is investing significantly to close the technological gap with the U.S. and China. SAP’s strategy aligns with these objectives while reinforcing its market presence through localized, secure, and compliant cloud solutions tailored for both public and private sectors.

Source:

[1] SAP Deepens European Cloud Sovereignty Offering (https://news.sap.com/2025/09/sap-deepens-european-cloud-sovereignty-offering-unlock-regional-ai-innovation/)

[2] SAP to invest over 20 billion euros in 'sovereign cloud' ... (https://www.cnbc.com/2025/09/02/sap-to-invest-over-20-billion-euros-in-sovereign-cloud-in-europe.html)

[3] SAP pours more than $23B into EU sovereign cloud buildout (https://www.ciodive.com/news/sap-data-sovereignty-private-cloud-generative-ai/759046/)