Christian Klein, CEO of SAP, stated at a recent investment summit that Europe shouldn’t focus on building datacenters to rival US cloud providers, as these hyperscalers have already invested heavily in the region.

Reflecting on current geopolitical issues, Klein highlighted the partnerships between SAP, French AI company Mistral, and Capgemini to address data sovereignty in Europe. However, he emphasized that replicating cloud infrastructure efforts is unnecessary.

Klein raised concerns about the feasibility of matching US cloud giants’ offerings, as they provide data sovereignty assurances in Europe. He cautioned against building multiple datacenters in Europe, stating that the car and chemical industries should instead focus on applying AI and advanced software.

Considering Europe’s energy challenges, Klein noted that establishing more datacenters isn’t a viable solution. SAP clients can expect diverse data security options, as the company remains neutral on infrastructure layers.

Amid rising US-European tensions, European politicians recently unveiled an International Digital Strategy aimed at navigating technological changes during global political shifts. Notably, European leaders are cautious of US cloud providers’ adherence to legal protocols.

SAP, valued at $342.4 billion, has emerged as Europe’s top company, with experts doubting the continent’s ability to replicate the vast infrastructure established by US cloud vendors.