SAP’s strategic focus on India is intensifying, evidenced by the recent launch of its Sovereign Cloud offering and the inauguration of a sprawling new campus in Bengaluru. This two-pronged approach highlights India’s critical role in SAP’s global growth strategy, particularly in the fields of cloud technology and Artificial Intelligence (AI).
Sovereign Cloud for Secure Data within India
On September 19, SAP unveiled its Sovereign Cloud in India, a significant development designed to meet the stringent data residency and compliance requirements of Indian government agencies and regulated industries like banking and healthcare.
This initiative empowers these organizations to leverage advanced cloud and AI solutions while ensuring their sensitive data remains within India’s borders, according to ANI News. Martin Merz, President of SAP Sovereign Cloud at SAP-SE, confirmed a global investment of 20 billion euros in sovereign cloud infrastructure, with India being a key beneficiary.
The offering aligns fully with India’s National Information Security Policy & Guidelines (NISPG) and the new Digital Personal Data Protection Act, 2023, providing a secure, compliant, and future-ready digital ecosystem.
Bengaluru Innovation Park: A Hub for Global R&D
Further demonstrating its commitment, SAP Labs India inaugurated its second campus in Bengaluru in August 2025. Named the SAP Labs India Innovation Park, this expansive 41-acre facility, built with a €194 million investment, is poised to become a major global hub for SAP’s research and development efforts.
It is designed to accommodate up to 15,000 professionals, underscoring India’s importance in SAP’s talent strategy.
This new campus will focus on cutting-edge areas including product engineering, enterprise AI, and customer support, serving both local and global clients. Notably, it houses India’s second SAP experience center and a Secure Operational Facility purpose-built to meet the exacting security requirements of Indian national security authorities. According to The Indian Express, the campus is located in Devanahalli, near Bengaluru’s international airport.
Investing in Talent and AI Future
SAP sees India as its fastest-growing market among its top 10 globally and is prioritizing talent development and AI innovation within the country. The company plans to hire “over proportionally” in India compared to other global locations, focusing on AI-first skills. IBEF also reports that SAP is directing a large portion of its research and development investments to India. SAP Labs India is responsible for a significant portion of the development of SAP’s AI co-pilot, Joule. The company is also collaborating with academic institutions and training programs like EduBridge to foster AI talent and address the evolving needs of the digital landscape.
These concerted investments in sovereign cloud infrastructure, R&D facilities, and talent underscore SAP’s long-term vision for India as a pivotal innovation engine and a crucial market for its cloud and AI solutions.
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