SAP's €20B Bet: A Sovereign Cloud to Challenge US Giants in Europe

SAP is investing €20 billion over the next decade to expand its sovereign cloud infrastructure in Europe, positioning itself as a secure and compliant alternative to American cloud giants. This initiative focuses on providing sovereign infrastructure for public sector and regulated environments, offering three options: SAP Cloud Infrastructure (IaaS), Sovereign Cloud On-Site, and Delos Cloud in Germany. While the CEO previously cautioned against directly competing with US hyperscalers in infrastructure, this investment prioritizes integrating sovereignty into the technology stack, not replicating global infrastructure. The strategy emphasizes boosting Europe's competitiveness through software, AI, and applied innovation.