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Europe’s industrial AI strategy

Why digital sovereignty is being decided now

February 17 2026Thomas Saueressig

Strength, resilience and autonomy

The guiding theme of this years’ Munich Security Conference was “Under Destruction”. Discussions revolved around military deterrence, geopolitical power shifts, and the future of transatlantic relations. Yet, beyond the traditional security issues, one point became particularly clear: Europes ability to remain capable of action in the 21st century increasingly hinges on the digital realm. Digital sovereignty is no longer an abstract buzzword. It has become a strategic prerequisite for economic strength, industrial resilience, and political autonomy.  

Technological dependency is a security risk

Today, over 80 percent of the key digital technologies used in Europe are provided by suppliers outside the European Union (EU). In a world where technological dominance is deliberately leveraged as a geopolitical pressure tool, such dependency is more than an economic issue. It impacts critical infrastructure, industrial value creation, and the ability of states to make independent decisions.  

Anyone discussing hybrid threats, supply chain resilience, or the operational readiness of modern armed forces must also address cloud infrastructures, data sovereignty, and artificial intelligence (AI). The next crisis will not be decided solely on the battlefield, but over data centers, platform architectures, and access to and control of digital systems in critical moments.
 

Sovereignty means freedom of choice, not isolation

Digital sovereignty is often misunderstood. It does not mean striving for autonomy at all costs or retreating from global innovation ecosystems. On the contrary: sovereignty means being able to use innovative technologies while retaining full control over your data, processes, and decisions. It is the deployment of advanced technology within a sovereign framework.  

This principle is especially crucial in the era of AI. AI systems deeply penetrate business models, production processes, and supply chains, processing highly sensitive industrial, personal, and security-relevant data. Without a sovereign cloud, AI becomes a strategic vulnerability.  
 

Thomas Saueressig, Customer Services and Delivery bei SAP SE

Sovereignty means being able to use innovative technologies while retaining full control over your data, processes, and decisions.

Thomas Saueressig, Board Member for Customer Services and Delivery at SAP

A European approach: Industrial AI within a sovereign framework

The European approach to the Industrial AI Cloud demonstrates that digital sovereignty is achievable in practice. The collaboration between SAP and Deutsche Telekom has created a platform that combines industrial AI with clear principles of control, security, and legal compliance.  

Both partners bring complementary strengths to this initiative: SAP, with its leading expertise in enterprise software, provides the platform (PaaS), process integration, and applied AI. Telekom supports as a robust European infrastructure and cloud provider. What emerges is not just a theoretical vision, but a practical, productive solution for businesses and public institutions alike.  

Key elements of the solution:  

  • Data sovereignty: Data remains in Europe and is subject to German and European legal frameworks  
  • Operational autonomy: Companies retain control through locally-based, security-vetted personnel under national oversight  
  • Technological transparency: AI is explainable, manageable, and deeply integrated into industrial processes  
  • Security and compliance: Fully aligned with the demands of critical infrastructure  
     

Cloud sovereignty is industrial policy

The Industrial AI Cloud is more than just a technological solution. It is a tool of industrial and security policy, enabling European companies to deploy AI productively without creating new strategic dependencies. At the same time, it strengthens the resilience of critical sectors—from energy and logistics to public administration.  

Europe's industrial strength lies in its unique ability to combine software, engineering expertise, and industrial data. Applied AI within a sovereign framework thus becomes the foundation of competitiveness and security in global systemic competition.  
 

Walk the talk 

Digital sovereignty requires investment, industrial partnerships, and the courage to make strategic decisions. Partnerships, such as the collaboration between SAP and Deutsche Telekom, demonstrate that Europe already has the technological foundations.  

The task is clear: scale industrial AI consistently, strengthen European cloud ecosystems, and recognize security as a key advantage and driver for growth. The Munich Security Conference has acknowledged this turning point.  

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About the author
Thomas Saueressig, Customer Services and Delivery bei SAP SE

Thomas Saueressig

Board Member for Customer Services and Delivery, SAP SE

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