September 4, 2025

SAP Invests 20 Billion Euros in Sovereign Cloud for Europe

Software giant SAP announces it will invest €20 billion over the next ten years to expand its sovereign cloud capabilities in Europe. The expanded portfolio is designed to give companies and administrations more control over data, infrastructure and platforms.

By Jan Nintemann and Jochen Siegle; Photo: Planet Volumes, Unsplash

The portfolio includes SAP Cloud Infrastructure and SAP Sovereign Cloud On-Site. This allows customers to specify that their data is stored exclusively in the EU. The aim is to strengthen digital sovereignty vis-à-vis global hyperscalers such as AWS, Google Cloud or Microsoft Azure – providers that are often affected by the US Cloud Act.

European Digital Strategy in Sight

With this multi-billion euro investment, SAP is positioning itself as a central player in the European debate on digital independence. The Group is clearly orienting itself towards political initiatives such as Gaia-X or the EU Data Act, sending a clear signal in favor of an independent European cloud landscape.

Opportunities and Open Questions

The investment could significantly strengthen Europe’s digital infrastructure. At the same time, questions remain open – such as on scaling and competitiveness: Will SAP succeed in establishing a real alternative to the major US providers with its Sovereign Cloud?

It is also still unclear how the 20 billion will be used in concrete terms – in data centers, software or partnerships. And then there is the question of sustainability: In view of the high energy consumption of modern data centers, it will be crucial to what extent SAP relies on green energy and energy-efficient technologies.

More Sovereignty, more Control

Nevertheless, with this announcement, SAP is sending a strong signal to politics and business: Digital sovereignty is a European issue for the future. Whether the initiative achieves the desired effect will depend on how consistently SAP implements the project technically, organizationally and sustainably.

Digital Sovereignty: Key Topic at TransformIT Europe 2026

The debate on digital sovereignty is also one of the main topics of the TransformIT Europe Expo & Conference. From May 5–8, 2026, leading figures from business, politics, NGOs and science will discuss cloud infrastructures, open source alternatives, the EU Data Act and sustainable data centers.

With players such as SAP, T-Systems, Gaia-X, Schneider Electric, Siemens, Fraunhofer, University of Würzburg and many more, the event in Brussels in 2026 will be the central platform for Europe’s digital independence and sustainability.

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