Based in Walldorf, SAP wants to enable European businesses and administrations to “embrace the cloud without compromise”. Photo: Stephan Daub/SAP

Based in Walldorf, SAP wants to enable European businesses and administrations to “embrace the cloud without compromise”. Photo: Stephan Daub/SAP

The German software group, SAP, has unveiled an investment plan worth more than €20bn over ten years to strengthen its Europe-based cloud offering.

The German software group has unveiled an investment plan worth more than €20bn over ten years to strengthen its sovereign cloud offering. The aim: to support European digital autonomy, guarantee compliance with local regulations and offer businesses a secure infrastructure incorporating artificial intelligence.

With its SAP Sovereign Cloud portfolio, the group now offers a complete ecosystem from infrastructure to applications, anchored in the European Union and designed for public and regulated sectors.

“Europe’s digital resilience depends on sovereignty that is secure, scalable and forward-looking,” said SAP Sovereign Cloud president Martin Merz. The offering includes several deployment models tailored to customers’ specific needs:

- SAP Cloud Infrastructure, SAP’s infrastructure-as-a-service operated in its own data centres in Europe, ensuring that all data remains in the EU;

- SAP Sovereign Cloud On-Site, an infrastructure installed directly on the customer’s premises, for a maximum level of technical and legal sovereignty;

- Delos Cloud, a solution specific to the German market, which supports the digital transformation of the public sector.

SAP Management Board member Thomas Saueressig stresses the strategic stakes: “European leadership in the next era of digital innovation, particularly in AI, will depend on our ability to apply this technology to differentiated use cases. With the extension of SAP Sovereign Cloud, we are providing access to all cloud and AI innovations within a sovereign and compliant framework.”

Among the first customers is the German group Hensoldt, which specialises in defence electronics, illustrating the relevance of this offering for sensitive industries. This long-term investment also aims to close the digital gap between Europe and the American giants in the sector. In 2024, SAP had already committed €2bn to strengthening its artificial intelligence capabilities.

In 2024, SAP generated revenues of €34.2bn, including €17.1bn from the cloud (+25% year-on-year), for net income of €3.15bn. The group also has a presence in Luxembourg, where it has a subsidiary in Betrange, a listing of its Eurobonds on the Luxembourg Stock Exchange and Baiza Capital, an unconsolidated investment company based in the capital.