Daily Newsletter

01 January 1970

Daily Newsletter

01 January 1970

SAP launches EU AI Cloud to unify digital sovereignty offerings

The platform provides customers with a variety of choices for data sovereignty and deployment.

RanjithKumar Dharma November 28 2025

German tech major SAP has introduced the EU AI Cloud, consolidating its initiatives on digital sovereignty into a single framework tailored for Europe.

The platform offers customers multiple options regarding data sovereignty and deployment, allowing them to choose between SAP-managed data centres, trusted European infrastructure, or managed on-site solutions.

SAP noted that EU AI Cloud is designed to address requirements for EU data residency and regulatory compliance across different organisational needs.

As part of the launch, SAP has partnered with Cohere to deliver agentic AI capabilities via Cohere North, integrated into the SAP Business Technology Platform (SAP BTP).

This collaboration intends to allow enterprises with data residency constraints to incorporate AI directly into core business processes.

The EU AI Cloud includes integrations with models from partners such as Cohere, Mistral AI, OpenAI, and others.

These offerings are accessible through SAP BTP as software-, platform-, or infrastructure-as-a-service solutions, with deployment options on SAP’s own infrastructure or through approved European providers.

According to SAP, this approach enables both private and public sector organisations to use new AI technology while maintaining compliance with European regulations.

Deployment through SAP Sovereign Cloud provides customers with control over infrastructure, platform, and software in line with operational and compliance requirements.

AI workloads run on SAP’s software abstraction layer hosted in European data centres, ensuring independence from non-European hyperscalers.

Specific deployment options include SAP Sovereign Cloud, which uses SAP’s European IaaS developed with open-source technologies, an on-site model where SAP manages infrastructure within customer-selected locations and selected global cloud providers offering additional sovereignty features.

Additionally, Delos Cloud in Germany is available for public sector applications.

In a separate development, SAP has selected Tata Consultancy Services (TCS) to drive its cloud and generative AI transformation under a five-year agreement.

TCS will support SAP in streamlining IT operations and building out AI capabilities as part of broader efforts to enhance efficiency.

This partnership continues an existing two-decade relationship between the firms, during which TCS contributed to the development of Enterprise Cloud Services (RISE with SAP).

Over the next five years, TCS will focus on reshaping SAP’s IT business function to facilitate further innovation and responsiveness.

TCS technology, software and services president V Rajanna said: “TCS and SAP have been a strategic partnership for more than two-decades, enabling enterprises to navigate complex digital transformation journeys.

“We support the “SAP runs SAP” philosophy and as we enter the next phase, this collaboration shall leverage transformative potential of AI and cloud to unlock new revenue streams, accelerate business growth, and deliver differentiated experiences for enterprise and their customers globally.”

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