SAP plans to invest over 20 billion euros to build a "sovereign cloud" to support Europe's AI development goals

　　Key Points

• SAP announced on Tuesday that it will invest over 20 billion euros in Europe over the next decade to enhance its sovereign cloud service capabilities.
• This move aims to ensure that customer data is stored within the EU, in compliance with regional data protection regulations such as the General Data Protection Regulation (GDPR).
• Currently, countries around the world are increasingly emphasizing the "localization" of computing infrastructure required to train and operate high-performance artificial intelligence systems, and SAP's investment aligns with this trend.

　　German software giant SAP announced on Tuesday that it will invest over 20 billion euros (approximately 23.3 billion USD) in Europe over the next 10 years to enhance its sovereign cloud service capabilities.

　　The company stated that it will expand the scope of its sovereign cloud services by adding a new Infrastructure as a Service (IaaS) platform. Through this platform, enterprises can access various computing services via SAP’s data center network. Currently, the IaaS market is mainly dominated by companies such as Microsoft and Amazon.

　　In addition, SAP will launch a brand-new "on-premises deployment solution": customers can use SAP-operated infrastructure within their own data centers.

　　The core goal of this initiative is to ensure that customer data is stored within the EU, thereby complying with regional data protection regulations such as the General Data Protection Regulation (GDPR).

　　"Innovation and sovereignty are not two isolated concepts; they must complement each other," said Thomas Saueressig, SAP Executive Board Member for Customer Services and Delivery, at an online press conference on Tuesday.

　　He added that for European enterprises, it is "crucially important" to access cutting-edge technological advancements such as artificial intelligence "in a fully autonomous and controllable environment."

　　Over the past year or so, "technological sovereignty" has gradually become a hot topic. Due to intensifying geopolitical tensions, companies have had to reassess their reliance on foreign technology.

　　Currently, countries around the world are increasingly promoting the "localization" of computing infrastructure required to train and operate high-performance artificial intelligence systems. This trend has prompted global tech giants such as Amazon and Microsoft to announce new sovereign cloud initiatives to ensure that European users’ data is stored within the EU.

　　As the executive body of the EU, the European Commission has listed artificial intelligence as one of the EU’s top priorities, aiming to strengthen its competitiveness with the United States and China. For a long time, Europe has lagged behind these two countries in the overall technology sector.

　　Earlier this year, the European Commission announced a plan to invest 20 billion euros to build new "AI gigafactories." These factories will be equipped with large supercomputers to develop the next generation of artificial intelligence models.

　　Saueressig stated that SAP is "deeply involved" in the construction of these new AI gigafactories, but will not be the leading partner in the initiative.

　　He also pointed out that the company’s investment of over 20 billion euros in European sovereign cloud service capabilities will not change its capital expenditure plan for next year, and that this investment has already been incorporated into its financial planning.