SAP Deepens European Cloud Sovereignty Offering to Unlock Regional AI Innovation

Rhea-AI Summary

SAP SE (NYSE: SAP) has announced an expanded digital sovereignty offering through its SAP Sovereign Cloud portfolio, backed by a €20 billion investment. The initiative introduces new deployment options including SAP Cloud Infrastructure, SAP Sovereign Cloud On-Site, and Delos Cloud in Germany.

The enhanced offering enables European customers to access comprehensive cloud technology while maintaining data sovereignty and regulatory compliance. The solution provides organizations with infrastructure control while unlocking SAP's full cloud capabilities, including SAP Business Technology Platform (SAP BTP) and embedded Business AI capabilities.

Available across multiple countries, SAP Sovereign Cloud ensures full-stack sovereignty across data, operational, technical, and legal dimensions, particularly benefiting public sector and regulated industries.

Positive

• Major €20 billion investment commitment to Europe's digital sovereignty
• Multiple deployment options offering flexibility for different security needs
• Full access to SAP's cloud innovations and AI capabilities while maintaining sovereignty
• Compliance with European data protection regulations through EU-based data storage

Negative

• Limited initial geographical availability with expansions still pending
• Significant infrastructure investment required for on-site deployment option

News Market Reaction

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-2.19% News Effect

On the day this news was published, SAP declined 2.19%, reflecting a moderate negative market reaction.

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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:

• SAP Cloud Infrastructure (in Europe): SAP Cloud Infrastructure is SAP's Infrastructure-as-a-Service (IaaS) platform that is developed and operated with open-source technologies within SAP's data center network. All data is stored within the EU to maintain compliance with European data protection regulations.
• SAP Sovereign Cloud On-Site: SAP offers SAP-operated infrastructure within a customer-owned or customer-selected data center. This solution delivers the highest levels of data, operational, technical, and legal sovereignty while maintaining SAP cloud innovation and architecture.
• Delos Cloud: SAP offers Delos Cloud in Germany, a secure and sovereign cloud that supports the flexible and rapid transformation of the public sector, to meet country-specific sovereignty requirements.

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.

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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.

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FAQ

What are the key components of SAP's new Sovereign Cloud portfolio?

SAP's Sovereign Cloud portfolio includes three main components: SAP Cloud Infrastructure for EU-based storage, SAP Sovereign Cloud On-Site for customer-selected data centers, and Delos Cloud for German public sector needs.

How much is SAP investing in European digital sovereignty?

SAP is making a long-term investment of more than €20 billion to support Europe's digital autonomy through secure, local, and regulation-compliant cloud solutions.

What benefits does SAP Sovereign Cloud offer to customers?

SAP Sovereign Cloud offers full-stack sovereignty across data, operational, technical, and legal dimensions, while providing access to SAP's complete cloud solutions, including Business Technology Platform and AI capabilities.

Where is SAP Sovereign Cloud currently available?

SAP Sovereign Cloud is currently available in multiple countries, with substantial additions planned, supported by hundreds of localized delivery experts and various certifications.

How does SAP Sovereign Cloud ensure data compliance?

SAP Sovereign Cloud ensures compliance by storing all data within the EU, following European data protection regulations, and offering various deployment models that maintain control across infrastructure, platform, and software.