German software firm SAP has announced that it will invest more than $23 billion into its sovereign cloud systems across Europe in the next 10 years. According to reports, the software firm is not just expanding its cloud tools; it is also looking to build something designed for AI and data control in the EU, with no middlemen needed.
Everything is expected to stay in Europe, from the hardware to the cloud services. SAP confirmed it will offer a new infrastructure-as-a-service (IaaS) platform so businesses can access computing power through SAP’s own network. These kinds of services are usually controlled by Microsoft or Amazon, but SAP is making a version that keeps everything local. There’s also a new on-site option. This means that users will be slowed to install SAP infrastructure directly inside their data centers.
SAP includes local options to keep data inside Europe
One of the reasons behind this move is EU laws, with SAP noting that the goal is to store customer data inside the European Union, so it doesn’t break GDPR rules. “Innovation and sovereignty cannot be two separate things — it needs to come together,” said Thomas Saueressig, the SAP board member in charge of customer services and delivery. He gave the speech at a virtual press event on Tuesday.
Saueressig added that European firms need full access to the latest tech, like artificial intelligence, but under strict control. He said they must have it “in a full sovereign context.” This push for sovereignty is not random, as tech companies and governments have started to rethink their dependence on foreign systems. Tensions between countries have also made it risky to rely on outside cloud platforms.
Now, nations are trying to move key computing infrastructure back home. These are the servers and systems needed to train and run powerful AI tools. SAP isn’t alone here. Amazon and Microsoft have also announced their own sovereign cloud setups to keep European user data locked inside the EU. Everyone is fighting for the same thing, but SAP just wants to do it differently.
According to SAP, it is based in Europe, it already follows EU law, and it doesn’t need to bend to US regulations, meaning the whole operation stays local. The European Commission is pushing hard on this. It made AI a top issue for the entire bloc. The Commission said Europe has been falling behind the U.S. and China in tech for years. So now they’re putting their own money on the line.
Earlier this year, the Commission laid out a separate plan to throw €20 billion into AI gigafactories. These are massive sites filled with supercomputers, designed to build and run next-generation AI models from scratch. SAP confirmed it is involved with that initiative, but it also said it won’t be the lead partner on the project. Just part of the buildout. Still, the overlap between cloud and AI is obvious. You need a secure local infrastructure to make AI safe and usable. You can’t build that if all your servers are sitting overseas.
