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Home Artificial Intelligence (AI)

SAP’s New European AI and Cloud Sovereignty Strategy

Adam Smith – Tech Writer & Blogger by Adam Smith – Tech Writer & Blogger
November 27, 2025
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Introduction to SAP’s EU AI Cloud

SAP is moving its sovereignty plans forward with EU AI Cloud, a setup meant to bring its past efforts under one approach. The goal is simple: give organisations in Europe more choice and more control over how they run AI and cloud services. Some may prefer SAP’s own data centres, some may use trusted European providers, and others may want everything managed on-site. EU AI Cloud is built to support those different needs while keeping data inside the region and in line with EU rules.

Strengthening AI Sovereignty Across Europe

SAP is also working with Cohere to bring new agent-style and multimodal AI tools to customers through Cohere North. These models will be available through SAP Business Technology Platform (SAP BTP), giving industries with strict data residency needs a way to build production-ready AI into everyday operations. The two companies say the goal is to help enterprises find better insights, improve decision support, and automate complex tasks without giving up control over compliance or performance. As Cohere’s team put it, their work with SAP is meant to keep advanced AI accessible to organisations that cannot move data outside Europe.

How EU AI Cloud Works

SAP is building EU AI Cloud with help from a range of European and global partners. Models and applications from Cohere, Mistral AI, OpenAI, and others are integrated directly into SAP BTP, giving customers a clearer path to build, deploy, and scale AI applications. Companies can access partner tools as SaaS, PaaS, or IaaS and choose where to run them: on SAP infrastructure or on approved European partners. The aim is to give enterprises and public sector groups access to modern AI tools while staying within European standards for security, data protection, and sovereignty.

Deployment Choices Tied to Different Security Needs

EU AI Cloud works through SAP Sovereign Cloud, which lets customers pick the level of control they want across the stack—from infrastructure to applications. AI models run on SAP’s cloud infrastructure and SAP BTP in European data centres, which keeps operations separate from US hyperscalers. The deployment options include:

  • SAP Sovereign Cloud on SAP Cloud Infrastructure (EU): SAP’s IaaS is based on open-source tools and runs inside SAP’s European data centre network. Data stays within the EU to support compliance with regional data protection rules.
  • SAP Sovereign Cloud On-Site: Infrastructure is managed by SAP but housed in a customer’s chosen data centre. This setup offers the highest level of control over data, operations, and legal requirements while keeping access to SAP’s cloud architecture.
  • Selected Hyperscalers by Market: Some customers may still run SAP commercial SaaS on global cloud providers. When they do, they can add sovereignty features based on regional needs.
  • A sovereign cloud service in Germany designed for the public sector. It supports local rules and is built to help government organisations modernise their digital systems.

Benefits of EU AI Cloud

EU AI Cloud gives organisations in Europe more choice in how they run AI and cloud workloads while keeping control of their data. The mix of deployment options, partner models, and sovereign design aims to support companies that face strict rules around privacy, storage, and operational oversight. For enterprises and public bodies that need AI systems built around local requirements, SAP’s approach offers a way to use advanced tools without giving up the safeguards they rely on.

Conclusion

In conclusion, SAP’s EU AI Cloud is a significant step forward in providing organisations in Europe with more control and choice over their AI and cloud services. By offering a range of deployment options and integrating models from various partners, SAP is helping to strengthen AI sovereignty across the continent. This approach not only supports companies with strict data residency needs but also ensures compliance with EU rules and standards for security, data protection, and sovereignty.

FAQs

  • What is SAP’s EU AI Cloud?: EU AI Cloud is a setup designed to bring SAP’s past efforts under one approach, giving organisations in Europe more choice and control over how they run AI and cloud services.
  • How does EU AI Cloud support AI sovereignty?: EU AI Cloud supports AI sovereignty by keeping data inside the EU, in line with EU rules, and offering a range of deployment options that cater to different security needs.
  • What are the deployment options available with EU AI Cloud?: The deployment options include SAP Sovereign Cloud on SAP Cloud Infrastructure (EU), SAP Sovereign Cloud On-Site, Selected Hyperscalers by Market, and a sovereign cloud service in Germany for the public sector.
  • What are the benefits of using EU AI Cloud?: The benefits include more choice and control over AI and cloud workloads, compliance with EU rules and standards, and the ability to use advanced AI tools without giving up safeguards.
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Adam Smith – Tech Writer & Blogger

Adam Smith – Tech Writer & Blogger

Adam Smith is a passionate technology writer with a keen interest in emerging trends, gadgets, and software innovations. With over five years of experience in tech journalism, he has contributed insightful articles to leading tech blogs and online publications. His expertise covers a wide range of topics, including artificial intelligence, cybersecurity, mobile technology, and the latest advancements in consumer electronics. Adam excels in breaking down complex technical concepts into engaging and easy-to-understand content for a diverse audience. Beyond writing, he enjoys testing new gadgets, reviewing software, and staying up to date with the ever-evolving tech industry. His goal is to inform and inspire readers with in-depth analysis and practical insights into the digital world.

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