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SAP (SAP) Expands Sovereign Cloud Portfolio to Boost AI Innovation

By Ghazal Ahmed | September 08, 2025, 12:19 AM

SAP SE (NYSE:SAP) is one of the AI Stocks Investors Are Watching Closely. On September 2, the company announced a comprehensive new approach to digital sovereignty and AI innovation through expanded offerings within its SAP Sovereign Cloud portfolio.

Through these offerings, SAP will provide its European customers access to their comprehensive technology stack, including SAP Cloud Infrastructure and SAP Sovereign Cloud On-Site.

European customers will now have access to new deployment models that are designed to meet regulatory and operational requirements while maintaining data sovereignty.

The company has introduced three deployment options. First, the SAP Cloud Infrastructure uses open-source technologies in SAP’s data center network, with all data stored within EU boundaries.

Second, the SAP Sovereign Cloud On-Site offers SAP-operated infrastructure within a customer-owned/customer-selected data center. Third, the Delos Cloud in Germany focuses on public sector transformation needs.

“The digital resilience of Europe depends on sovereignty that is secure, scalable and future-ready. SAP’s full-stack sovereign cloud offering delivers exactly that, giving customers the freedom to choose their deployment model while helping ensure compliance up to the highest standards.” -Martin Merz, President, SAP Sovereign Cloud.

SAP SE (NYSE:SAP) is a leader in ERP software that leverages artificial intelligence to enhance its enterprise resource planning (ERP) solutions.

While we acknowledge the potential of SAP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Must-Watch AI Stocks on Wall Street and 10 AI Stocks to Watch Out For in 2025.

Disclosure: None.

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