SAP outlines new approach to European AI and cloud sovereignty

Plus: New Microsoft cloud updates support Indonesia’s long-term AI goals

Author

Hafizur Rahman
November 30, 2025

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SAP is launching EU AI Cloud, a unified “sovereign AI + cloud” stack. This lets European organisations use modern AI while keeping their data and legal matters in Europe.

🔍 What SAP is Offering

  • A full “EU AI Cloud” framework combines SAP’s past sovereignty efforts into one solution for European customers.

  • AI runs on SAP Sovereign Cloud and SAP BTP in EU data centres. This setup keeps EU data in the EU. It also keeps it separate from U.S. hyperscalers at the control plane level.

  • Flexible deployment options:

    • SAP EU data centres

    • Trusted European infrastructure providers

    • Fully managed on-prem deployments for sensitive workloads.

  • Integrated AI from partners like Cohere North, Mistral, OpenAI, etc., available through SAP BTP. Customers can create agentic, multimodal AI and stay compliant with EU rules.

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Tech Titans Amass Multimillion-Dollar War Chests to Fight AI Regulation 

Multimillion-dollar PACs are being set up on both sides of the AI regulation debate for the 2026 U.S. midterms.

Key Points :

  • A major super PAC, Leading the Future, has raised over $100M. Its goal is to “reshape the political scene around innovation policy.” They aim to support pro-AI-growth candidates from both parties. At the same time, they will strongly oppose anyone who slows down rapid deployment.

  • Key donors include famous venture capitalists and Big Tech leaders. This list features Andreessen Horowitz and Greg Brockman, co-founder of OpenAI. Meta Platforms has also contributed through various political initiatives.

  • Their main focus is state-level AI regulation. They believe that differing state rules could hinder U.S. AI progress and weaken its stance against China in the “AI arms race.”

  • Pro-regulation groups have also started their own PACs. They aim to raise over $50 million for candidates supporting stricter AI rules on safety, deepfakes, and labour impacts.

Microsoft CEO Satya Nadella says the company has AI GPUs “sitting in inventory.” This is because there’s not enough power and data centre space for deployment.

In the BG2 podcast with Sam Altman, Nadella stated that the main challenges are power and build-out speed, not chip supply.

Key Points:

  • “The biggest issue we face isn’t a compute glut; it’s power. We need to complete builds quickly while staying close to power limits.””

  • AI Magazine and other reports call this an AI power-supply chain issue. The chips are available, but data centres, grid connections, and substations take years to set up.

  • Hyperscalers like Microsoft, Google, AWS, and Meta plan to invest hundreds of billions in AI infrastructure. However, they face regional grid limits and delays in permits.

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