SAP has launched its EU AI Cloud, the next step in the company’s mission to realize European digital sovereignty. But, before I take a deep dive into the mechanics of the new AI cloud, let’s have a recap of SAP CEO Christian Klein’s vision for how Europe should address AI development by following its own unique path and not copying U.S. hyperscalers, and why he believes this will enable Europe to prosper in the AI Era:
- “The New Christian Klein: Supercharges SAP and Helps Europe Avoid Data-Center Disaster” — Bob Evans highlights Klein’s stance on not building European hyperscalers, instead focusing on European data privacy, data security, data sovereignty, and data residency.
“I hope the European leaders will take Klein’s advice about not committing hundreds of billions and then trillions to try to recreate hyperscale capabilities that will, without question, be wildly different by the time such a copy-and-paste effort would be complete,” he says.
- “Tech Giants Siemens and SAP Urge Pro-Innovation AI Regulations in Europe” — I discuss the positions of Siemens CEO Roland Busch and SAP’s Klein on AI legislation in Europe, and the argument for a “new regulatory framework that supports AI innovation rather than stifling it.”
- “SAP Sovereign Cloud Mindset Even More Valuable than $22 Billion Investment” — Evans explains that “the biggest strategic asset SAP is deploying is CEO Christian Klein’s insistence that European companies focus on AI-powered innovation and growth rather than trying build their own imitation hyperscalers.”
SAP EU AI Cloud
Ultimately, EU AI Cloud is a single, sovereign AI and cloud solution designed specifically for Europe, ensuring EU data residency and absolute sovereignty. This means that, in one place, European companies can meet the deployment and operational requirements unique to their jurisdiction. This enables businesses in the region to scale AI without being hindered by the threat of regulatory missteps.
SAP is enhancing its digital sovereignty offerings by collaborating with other organizations to improve the effectiveness and capabilities of the EU AI Cloud. Through a partnership with AI innovator Cohere, SAP is delivering significant AI capabilities via Cohere North, Cohere’s all-in-one AI workspace. SAP is integrating Cohere North into the SAP Business Technology Platform (SAP BTP).
This integration will enable customers who rely on digital residency requirements to benefit from the advanced automation and insights provided by Cohere’s outstanding AI platform. Other partners powering the EU AI Cloud include model and application support from Mistral AI, OpenAI, and other leading providers.
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Flexible Deployment
In alignment with Kleins’ vision for a flexible, sovereign landscape that meets the unique needs of customers, the EU AI Cloud offers flexible deployment options via SAP Sovereign Cloud. Users have complete control over the infrastructure, platform, and software in accordance with regulatory requirements, while AI models run on SAP’s software abstraction layer in European data centers.
Deployment options include:
- SAP Sovereign Cloud on SAP Cloud Infrastructure (EU)
- SAP Sovereign Cloud On-Site
- Selected Hyperscalers per Market (sovereignty features applied where required)
- Delos Cloud (EU-compliant German sovereign cloud)
Closing Thoughts
SAP’s EU AI Cloud exemplifies Klein’s vision of European sovereignty in a profound way. What I admire most about this initiative is how it integrates previous efforts to create not only a neat and digestible solution, but also a powerful one backed by some of the most important companies in the AI space. There are no compromises here; sovereignty does not come with sacrifices.
Klein’s bullish approach to dismissing the relevance and impact of European hyperscalers was anti-establishment and did not align with the narrative proposed by EU legislators. However, it was more than just talk or opinion. Klein has proven his ability to turn ambition into innovation, delivering an alternative that — where plans for eventual U.S. competition in the hyperscaler space couldn’t meet expectations — opens a path for Europe to shape the AI landscape on its own terms, with SAP leading the charge.
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