Christian Klein, CEO of SAP, Europe’s top-valued company, has expressed skepticism over Europe’s drive to establish its own cloud data centers in competition with established US hyperscale providers. Speaking at a recent investment conference, Klein pointed to geopolitical shifts and growing tensions, emphasizing SAP’s partnerships with local firms like French AI company Mistral and Capgemini to cater to concerns about data sovereignty. He argued that efforts to match the infrastructure prowess of US companies in Europe are misplaced and impractical.

Klein highlighted the significant resources US companies like Microsoft, Google, and AWS have already dedicated to Europe, noting their declarations of ensuring data sovereignty. In contrast, he sees no value in developing Europe’s own cloud infrastructures when resources could be better allocated to apply AI and intelligent software, thus enhancing the competitive edge of European industries.

Emphasizing energy cost pressures across the continent, Klein sees the building of new data centers as problematic. Instead, he advocates for offering layers of data security while remaining infrastructure-neutral. His remarks come amid European efforts like the new International Digital Strategy aimed at boosting technological capabilities in a reorienting global political landscape.

Though leaders stress technological independence, Klein’s concerns resonate with experts who consider emulating US hyperscale providers in Europe as nearly impossible. SAP’s market capitalization has reached $342.4 billion, underscoring its influence and the gravity of Klein’s remarks as the company, and the broader European community, navigate these complex discussions.

As Europe debates digital sovereignty, ongoing tensions with the US administration foster uncertainty around future cloud strategies. Microsoft, AWS, and Google continue asserting their commitment to European data protection, but skepticism remains about genuine compliance in light of US government’s stance on privacy issues.