SAP Expands Sovereign AI Capabilities in Europe

EU regulations have reshaped how enterprises build and deploy cloud and AI systems, creating a rising demand for technology that is compliant by design.

The Data Act builds on General Data Protection Regulation (GDPR), the AI Act establishes guardrails for deploying high-risk AI systems, and Digital Operational Resilience Act (DORA) introduces resilience and cybersecurity obligations for critical industries. Meanwhile, scrutiny of the EU–US Data Privacy Framework has continued without resolution.

Against this backdrop, sovereign cloud and AI infrastructure has become a strategic asset. SAP is responding with more than $20 billion in planned investment, new data centers, and now expanded partnerships aimed at enabling a truly sovereign AI stack for Europe.

A Fast-Moving Strategic Alliance

Since it began in June 2024, SAP has steadily expanded its partnership with Mistral AI, a France-based company that provides LLMs and AI solutions.

The partnership first gave SAP customers access to Mistral AI’s LLMs though the SAP Generative AI Hub, and later Mistral AI moved its commercial modules, namely Mistral Large 2, onto SAP infrastructure. Early this year, the companies collaborated with Capgemini to provide AI-driven solutions for highly regulated sectors and industries.

Most recently, SAP announced that it would make Mistral AI’s frontier AI, including Le Chat, available to its customers on SAP Business Technology Platform (SAP BTP).

The companies also committed to developing industry-specific applications for the public sector and more regulated industries, like finance, healthcare, and telecommunications. SAP customers in Germany will have access first, with broader availability to follow.

SAP said the partnership would accelerate the rollout of AI-driven solutions in the EU, “echoing the pace of major US tech partnerships.”

Operationalizing Sovereign Cloud Standards

SAP and Capgemini are long-term partners. Since 2024, however, the companies have deepened their collaboration over AI.

Capgemini integrated SAP Business AI into its professional consulting and delivery services, and later collaborated with SAP and Mistral AI on the development of AI solutions for highly regulated organizations.

Now SAP and Capgemini have established the Sovereign Technology Partnership, which the companies designed to provide a sovereign cloud and AI governance framework.

The new partnership gives organizations in the EU secure and compliant access to cloud infrastructure, data management services, automation tools, and AI.

The expansion of the companies’ collaboration is planned for customers in the public sector, defense organizations, and highly regulated industries. It will launch in France, Germany, the Netherlands, and the UK, before expanding to other European markets.

Strengthening Cross-Border Cloud Resilience

SAP announced support for the Franco-German Mutual Assistance Commitment, an alliance between Bleu, an Orange-Capgemini joint venture in France, and Delos Cloud, an SAP subsidiary in Germany, that will improve cybersecurity for cloud infrastructure.

The Bleu-Delos Cloud commitment will allow the companies to collaborate on early detection, coordinated defense, and remediation for cyber incidents.

This is expected to enhance their cross-border capabilities during emergency situations or crisis scenarios, such as a sophisticated cyberattack or military conflict.

Further, Delos Cloud signed a MoU to provide some Microsoft customers with the ability to migrate or shift workloads to Delos Cloud during crises.

It gives Delos Cloud the authority and capability to access Microsoft cloud services in order to ensure business continuity should Microsoft’s services become restricted in Europe.

What This Means for SAPinsiders

• Digital sovereignty provides competitive advantage. Solutions built on SAP BTP and SAP Business AI are natively compliant with EU requirements, reducing cross-border friction, lowering integration risk, and enabling faster deployments. This creates first-mover advantages for enterprises, particularly when combined with SAP Industry Cloud.
• Industry-specific capabilities differentiate products and services. SAP’s industry-aligned AI modules provide highly regulated customers with AI that is secure, audit-ready, and aligned with EU risk frameworks. Because these capabilities are embedded directly into SAP S/4HANA, SAP BTP, and other SAP solutions, users can automate processes with confidence that models, data flows, and audit trails support sector-specific compliance.
• Resilience requires integration. SAP’s support for cross-border initiatives—along with new mechanisms to ensure workload continuity during crises—strengthens the operational integrity of SAP environments in Europe. Enterprises should consider how deeply their SAP landscapes integrate with sovereign cloud services, regional partnerships, and contingency frameworks designed to maintain business continuity in the EU.