A person holds a smartphone displaying the logo of SAP, a German multinational software corporation known for its enterprise resource planning solutions.
German software giant SAP on Tuesday announced it will invest over 20 billion euros ($23.3 billion) into its sovereign cloud capabilities in Europe over the next 10 years.
The company said it was expanding its sovereign cloud offerings to include an infrastructure-as-a-service (IaaS) platform enabling companies to access various computing services via its data center network. IaaS is a market dominated by players like Microsoft and Amazon .
It will also roll out a new on-site option that allows customers to use SAP-operated infrastructure within their own data centers.
The aim of the initiative is to ensure that customer data is stored within the European Union to maintain compliance with regional data protection regulations such as the General Data Protection Regulation, or GDPR.
"Innovation and sovereignty cannot be two separate things — it needs to come together," Thomas Saueressig, SAP's board member tasked with leading customer services and delivery, said during a virtual press conference Tuesday.
He added that it was important for European companies to be able to access the latest technological advancements such as artificial intelligence "in a full sovereign context."