SAP Commits €20 Billion to Europe’s Sovereign Cloud to Accelerate AI Innovation
German enterprise software leader SAP announced on Tuesday a landmark plan to invest more than €20 billion ($23.3 billion) over the next decade to strengthen its sovereign cloud infrastructure in Europe.
The investment will expand SAP’s sovereign cloud portfolio by introducing a new infrastructure-as-a-service (IaaS) platform, giving European businesses secure access to advanced computing services across SAP’s data center network. The company also unveiled an on-site option, enabling organizations to host SAP-managed infrastructure directly within their own facilities.
The initiative is designed to ensure that sensitive business data remains within the European Union, fully aligned with regional data protection frameworks such as the General Data Protection Regulation (GDPR).
“Innovation and sovereignty must go hand in hand,” said Thomas Saueressig, SAP Executive Board Member for Customer Services and Delivery, during a virtual press briefing. He emphasized that European enterprises need access to cutting-edge technologies like artificial intelligence within a fully sovereign environment.
The push for technological sovereignty has gained momentum amid global geopolitical tensions, with governments and corporations reassessing their dependence on foreign cloud providers. Industry giants such as Amazon and Microsoft have also launched sovereign cloud programs to address EU regulatory requirements and data residency concerns.
The European Commission has prioritized artificial intelligence as part of its digital strategy, aiming to reduce Europe’s reliance on the U.S. and China. Earlier this year, the Commission pledged €20 billion for “AI gigafactories” equipped with powerful supercomputers to develop next-generation AI systems.
SAP confirmed that while it is actively supporting the creation of these AI gigafactories, it will not be the lead partner. The company clarified that its sovereign cloud investment has already been factored into its financial roadmap and will not affect capital expenditure projections for the upcoming fiscal year.
With this commitment, SAP is positioning itself at the forefront of Europe’s digital transformation, reinforcing the continent’s AI leadership and data sovereignty goals.
