Dive Brief:
- SAP launched its EU AI Cloud, a sovereign AI and cloud offering designed for European customers of the ERP giant, according to a Thursday announcement.
- The EU AI Cloud allows customers to choose the appropriate level of sovereignty and deployment to meet each company’s needs, including SAP data centers, on-premises facilities or trusted European infrastructure.
- “EU AI Cloud supports EU data residency and full sovereignty, helping ensure that every organization can meet its unique regulatory and operational requirements,” the company said in the announcement.
Dive Insight:
The launch of SAP’s EU AI Cloud builds on the company’s more than $20 billion investment — announced in September — to expand its sovereign cloud offerings in Europe.
SAP saw “tremendous customer interest” in the company’s software and on-site cloud offerings for highly regulated customers, according to SAP CEO Christian Klein.
“We provide software and cloud solutions together with strong cloud infrastructure partners,” Klein said during SAP’s Q3 2025 earnings call. “This allows us to offer customers the best of the best across the technology stack. And it allows us to reach great global coverage at a healthy margin without any long-term bets.”
SAP is integrating AI models and applications from providers — including OpenAI, Mistral AI and Cohere — directly into SAP Business Technology Platform, which enables the EU AI Cloud to deliver a “pathway for building, deploying and scaling AI-powered applications,” according to SAP’s announcement. SAP customers can choose to deploy the AI offerings across SAP’s infrastructure or trusted European partners.
This approach gives European enterprises the opportunity to “benefit from the latest AI innovations securely, in full compliance with European standards and with the sovereignty and flexibility they require,” the company said.
The AI models in particular run on a combination of SAP Cloud Infrastructure and SAP Business Technology Platform in European data centers, allowing enterprises to rely on compute capacity outside of hyperscalers, the company said.
The new product launch follows the European Commission's move to open an investigation into SAP's ERP business practices in September. SAP last month proposed several changes to its ERP product’s maintenance and support services as a result.
