SAP announced the launch of its EU AI Cloud, a sovereign cloud platform that integrates AI models from Cohere, Mistral AI and OpenAI into its Business Technology Platform. The offering gives customers the flexibility to choose from SAP’s own data centers, trusted European infrastructure, or a fully managed on‑premises solution, ensuring EU data residency and compliance with GDPR and other European data‑protection regulations.
The move underscores SAP’s commitment to digital sovereignty, a priority for European governments and regulated industries that demand strict control over data location and processing. By embedding partner models directly into the BTP, SAP enables enterprises to deploy advanced AI capabilities without leaving the SAP ecosystem, thereby reducing integration complexity and accelerating time‑to‑value for customers who must meet stringent regulatory requirements.
Financially, the launch builds on a strong cloud momentum. SAP’s cloud revenue grew 22% in Q3 2025 and 27% year‑over‑year in Q4 2024, reflecting robust demand for cloud‑based AI services. The EU AI Cloud is expected to capture a share of this growth, particularly in the public‑sector and regulated‑industry segments where data residency is non‑negotiable. The expanded AI portfolio positions SAP to compete more effectively against global cloud providers that face scrutiny over data sovereignty in Europe.
Management highlighted the strategic importance of the launch. CEO Christian Klein emphasized that “AI is a core driver of digital transformation, and our sovereign cloud offerings give customers the confidence to adopt AI at scale while staying compliant.” The announcement aligns with SAP’s broader Business AI strategy, which focuses on responsible, reliable, and integrated AI solutions across its product suite.
The EU AI Cloud launch is a key milestone in SAP’s cloud strategy, reinforcing its leadership in the European market and setting the stage for further expansion of AI‑enabled services that meet the region’s regulatory and security expectations.
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