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.

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.

Here are the deployment options:

  • 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.

EU AI Cloud gives organisations in…


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Last Update: November 27, 2025