SAP Invests €20 Billion in European 'Sovereign Cloud' to Boost AI Innovation

SAP to invest over 20 billion euros in 'sovereign cloud' in boost to Europe's AI ambitions

A person holds a smartphone displaying the logo of SAP, a German multinational software corporation known for its enterprise resource planning solutions. German software giant SAP on Tuesday announced it will invest over 20 billion euros ($23.3 billion) into its sovereign cloud capabilities in Europe over the next 10 years. The company said it was expanding its sovereign cloud offerings to include an infrastructure-as-a-service (IaaS) platform enabling companies to access various computing services via its data center network. IaaS is a market dominated by players like Microsoft and Amazon. It will also roll out a new on-site option that allows customers to use SAP-operated infrastructure within their own data centers. The aim of the initiative is to ensure that customer data is stored within the European Union to maintain compliance with regional data protection regulations such as the General Data Protection Regulation, or GDPR. "Innovation and sovereignty cannot be two separate things -- it needs to come together," Thomas Saueressig, SAP's board member tasked with leading customer services and delivery, said during a virtual press conference Tuesday. He added that it was important for European companies to be able to access the latest technological advancements such as artificial intelligence "in a full sovereign context."

SAP Deepens European Cloud Sovereignty Offering to Unlock Regional AI Innovation

Decades of SAP's experience in securing mission-critical operations now powers the demands of sovereignty, regulation, and AI-driven growth WALLDORF, Germany, Sept. 2, 2025 /PRNewswire/ -- SAP SE (NYSE: SAP) today announced a comprehensive new approach to digital sovereignty and AI innovation. Expanded offerings within the SAP Sovereign Cloud portfolio give European customers access to a comprehensive technology stack, including SAP Cloud Infrastructure and SAP Sovereign Cloud On-Site. With the announcement, SAP sets a new standard for secure, compliant, and scalable innovation, reinforcing digital sovereignty as a core element of Europe's technological resilience and strategic autonomy. "Europe's leadership in the next era of digital innovation -- especially in AI -- will depend on how effectively we apply AI to solve differentiated industry use cases," said Thomas Saueressig, Member of the Executive Board of SAP SE, Customer Services & Delivery. "With our expanded SAP Sovereign Cloud offering, SAP is unlocking access to the full spectrum of cloud innovations and AI capabilities for all markets and industries -- including the public sector and regulated environments -- while ensuring these advancements are delivered in a sovereign framework and on customers' own terms." Deployment choices for every security profile With the expansion of SAP Sovereign Cloud, customers can choose from new deployment models that offer control across infrastructure, platform, and software tailored to their specific regulatory and operational needs. This flexibility enables organizations to innovate securely and in compliance with local laws while maintaining the freedom to scale on their own terms. SAP Sovereign Cloud solutions are available on: Long-term Investment in Europe's digital resilience With a long-term investment of more than €20 billion Euros, SAP is making digital sovereignty a strategic priority. This commitment reflects SAP's determination to support Europe's digital autonomy through more secure, local, and regulation-compliant cloud solutions tailored to the public sector and highly regulated industries. With SAP Sovereign Cloud, customers not only gain infrastructure control but also unlock the full potential of cloud solutions from SAP. The offering enables organizations to run their SAP Business Suite in sovereign environments while benefiting from continuous innovation cycles, including SAP Business Technology Platform (SAP BTP) and embedded SAP Business AI capabilities. This helps ensure that customers can innovate more securely and locally without compromising on the pace or depth of transformation. "The digital resilience of Europe depends on sovereignty that is secure, scalable and future-ready," said Martin Merz, President, SAP Sovereign Cloud. "SAP's full-stack sovereign cloud offering delivers exactly that, giving customers the freedom to choose their deployment model while helping ensure compliance up to the highest standards." Today, SAP Sovereign Cloud is available in multiple countries with substantial additions to come, supported by hundreds of localized delivery experts and a broad set of certifications. The offer helps ensure full-stack sovereignty across data, operational, technical, and legal dimensions, empowering customers to maintain control, meet regulatory requirements, and innovate with confidence. Visit the SAP News Center. Get SAP news via LinkedIn and Bluesky. About SAP As a global leader in enterprise applications and business AI, SAP (NYSE:SAP) stands at the nexus of business and technology. For over 50 years, organizations have trusted SAP to bring out their best by uniting business-critical operations spanning finance, procurement, HR, supply chain, and customer experience. For more information, visit www.sap.com. This document contains forward-looking statements, which are predictions, projections, or other statements about future events. These statements are based on current expectations, forecasts, and assumptions that are subject to risks and uncertainties that could cause actual results and outcomes to materially differ. Additional information regarding these risks and uncertainties may be found in our filings with the Securities and Exchange Commission, including but not limited to the risk factors section of SAP's 2024 Annual Report on Form 20-F. © 2025 SAP SE. All rights reserved. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE in Germany and other countries. Please see https://www.sap.com/copyright for additional trademark information and notices. 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