SAP CEO Christian Klein has delivered a blunt message to Europe: building more datacenters is not the path to digital sovereignty. Speaking at an investment conference hosted by BNP Paribas, the head of Europe’s most valuable tech firm said attempts to rival American cloud giants like Amazon, Google, and Microsoft are not only futile but economically reckless.
“It’s completely crazy,” Klein said, referring to efforts to replicate hyperscaler infrastructure in countries like France. “That is sovereignty done in the wrong way.”
With tensions rising over data governance and global tech power, European governments have floated the idea of bolstering local cloud infrastructure. But Klein argues this approach misunderstands the true challenge. Instead of focusing on physical storage, he says Europe should invest in artificial intelligence and intelligent software to boost efficiency in key sectors like automotive and chemical manufacturing.
SAP has recently partnered with French AI firm Mistral and consulting company Capgemini to provide clients with full data control without depending on the massive infrastructure the US tech giants have spent years building. Klein emphasized that SAP remains neutral on the infrastructure layer and focuses instead on software that enables smarter supply chains and faster production.
He also pointed out the harsh economic reality: energy prices in Europe remain high, making datacenter expansion an even less practical solution. “We need to be the best at applying AI, not the best at duplicating hardware,” he said.
As Europe pushes its new International Digital Strategy, Klein’s comments highlight a key divide—whether sovereignty is better secured through independence or intelligence.
