Industrial AI Made in Europe: Digital Sovereignty Through Partnership and Innovation 

SAP announced the launch of the Industrial AI Cloud project, marking a major milestone on the path to implementing the vision of “Industrial AI Made in Europe.” 

At the heart of this effort, SAP is working in concert with Deutsche Telekom, NVIDIA, Siemens, Deutsche Bank, Perplexity, PhysicsX, and Agile Robots. 

Together, the AI Cloud project partners plan to help shape Europe’s digital future and facilitate the application of advanced AI technologies in European industry, beginning with a partnership between Deutsche Telekom and NVIDIA totaling around €1 billion. 

The initiative, which is backed by the German Federal Ministry for Digital Affairs and State Modernization, is designed to transform Germany into Europe’s AI hotspot and enable European companies to access secure and sovereign computing resources, as well as help them accelerate innovation and unlock the full potential of industrial AI — responsibly, collaboratively, and on Europe’s terms — drawing on Europe’s vast corporate data reserves. 

Digital sovereignty has been a hot topic in Europe and elsewhere over the past nine months, reflecting growing concerns about geopolitical events, including tariffs and cross-border data access. Some, including the European Union, have argued that Europe needs its own infrastructure to support digital sovereignty, while others have taken a broader view of the issue. 

The Industrial AI Cloud project aims to bridge these perspectives and strengthen digital sovereignty and innovation in Germany and across Europe by leveraging the best available technologies through trusted partnerships while ensuring that control over proprietary data remains firmly in European hands. 

During a joint press conference in Berlin, the partners unveiled their plans for the Industrial AI Cloud, which promises to simplify the integration of AI solutions into business operations, addressing the fragmentation that has long limited Europe’s AI landscape. 

In its first phase, Deutsche Telekom’s existing data center in Munich will be expanded by adding AI infrastructure with NVIDIA GPUs by the first quarter of 2026. This will enable the provision of high-performance AI services to companies of all sizes throughout Germany and Europe.  

While Deutsche Telekom supplies physical infrastructure, SAP delivers the technology layer by providing SAP Business Technology Platform and a comprehensive suite of applications, accelerated by advanced AI and simulation technologies, including those from NVIDIA. Together, the partners are establishing a secure and high-performance digital platform for enterprises, public sector organizations, and regulated industries such as defense and critical infrastructure.

The state-of-the-art AI computing facility with the Industrial AI Cloud is also one of the first flagship projects of the “Made 4 Germany” initiative, which includes more than 100 German companies, aiming to strengthen Germany as a business location and accelerate digitalization in business and public administration. 

As SAP CEO Christian Klein emphasized, the demand for digital sovereignty is growing rapidly in an increasingly regulated and complex environment where tech companies are competing for leadership in the emerging market for generative and agentic AI leadership. 

According to SAP estimates, the AI market in Europe will exceed €20 billion by 2030 and require more than 22 gigawatts of data center capacity. Meeting this demand, Klein argued, is only possible through close collaboration and partnerships. “We will not achieve digital sovereignty by isolating ourselves, but by bringing the best technologies to Europe together with strong partners, while retaining control over our data,” Klein said.

In the global AI race, it is crucial for Europe to set its own agenda and become a leader in industrial AI. 

Projects like the Industrial AI Cloud, Klein noted, lay the foundation for this ambition. Building infrastructure and data centers is only one step; the real economic value will be generated when AI is productively deployed and deeply integrated into business and administrative processes.  

“Only when AI is seen not as an isolated technology, but as an integral part of operational workflows, will it unlock its potential to rethink business models, substantially boost productivity, and accelerate innovation,” he said. 

Germany and Europe possess a strong industrial base, extensive expertise, and a wealth of industrial data. To turn this opportunity into tangible progress, policymakers and business leaders must coordinate their efforts, establish clear frameworks, and invest strategically in education, research, and secure, interoperable infrastructure. 

The Industrial AI Cloud enables seamless integration of AI solutions into businesses, closing the gap in Europe’s previously fragmented AI landscape. It combines choice and scalability, addressing the growing demand for secure, European AI solutions. 

The vision extends beyond the project itself. A digitally sovereign Europe — offering modern, user-centric services for citizens, government, and industry — will make Europe more efficient and innovative than ever, thanks to AI. 

Source: SAP media announcement