At JNC, we closely monitor global technology partnerships that redefine how enterprises and governments embrace innovation. On September 24, 2025, SAP and OpenAI announced OpenAI for Germany a program designed to accelerate the adoption of advanced AI capabilities within the public sector expected to launch 2026.
This initiative will deliver sovereign AI services through SAP’s Delos Cloud, operated on Microsoft Azure Germany, ensuring a secure, compliant and scalable infrastructure designed for government agencies, local administrations, and research institutions. Importantly, while hosted on Delos, all data remains physically and operationally sovereign, processed and stored entirely within Germany’s borders. The Delos environment is architected to be separate from global public cloud operations, guaranteeing that German public sector data stays under national jurisdiction. From our perspective, this represents a pivotal step for Germany and underscores the central role sovereign AI will play in shaping Europe’s digital future.
Why Sovereign AI is a Turning Point
In our work with public and private sector clients, we see two major challenges that organizations face when adopting AI:
- How to unlock the benefits of AI while reducing manual workload and increasing efficiency
- How to ensure compliance, sovereignty, and trust when handling sensitive data
The OpenAI for Germany initiative aims to address both challenges head-on. SAP and OpenAI are deploying AI within a secure, sovereign cloud environment based in Germany, designed to meet the highest standards of data protection and compliance. This approach enables government and public institutions to modernize operations safely, without compromising security or breaching legal frameworks such as the GDPR, European AI Act or established German regulatory standards governing data processing and cloud operations.
Key Highlights of the SAP and OpenAI Partnership
From JNC’s viewpoint, the most significant elements of this announcement are:
- Sovereign Cloud Infrastructure: Hosted on SAP Delos Cloud within Germany, ensuring full data sovereignty and adherence to national and EU compliance frameworks
- Scalable AI Capacity: Infrastructure will support 4,000 Graphics Processing Units (GPUs) dedicated to AI workloads, with expansion planned as adoption grows
- Public Sector Applications: AI will enhance records management, administrative data analysis, and workflow automation, enabling staff to prioritize citizen-facing services over administrative tasks
- Alignment with National Strategy: Supports Germany’s High-Tech Agenda, which targets AI-driven value creation of up to 10% of GDP by 2030
Implications Beyond Germany
While the initiative is primarily focused on Germany, its impact will extend across the wider European landscape. Sovereign AI frameworks are increasingly becoming critical for governments and enterprises alike, as they strive to balance technological innovation with data sovereignty and regulatory compliance.
Looking ahead, the framework established through OpenAI for Germany may also extend into the private sector, enabling regulated industries such as finance, healthcare and manufacturing to leverage sovereign AI within secure national infrastructures.
For the United Kingdom and European organizations, several strategic considerations emerge:
- How will sovereign AI influence procurement and compliance requirements?
- What role will sovereign cloud infrastructure play in shaping enterprise IT strategies?
- How should organizations prepare for a future where secure, sector-specific AI solutions become the standard?
At JNC, we believe this announcement signals that sovereign AI is no longer optional, it is the path forward. We are a trusted advisor in IT and cloud strategy. We help organizations prepare for the next wave of digital change. The launch of OpenAI in Germany highlights the need for AI solutions that are safe, follow the rules, and match national goals.
We see this partnership as a blueprint for responsible AI adoption across Europe. It shows that using AI on a large scale in the public sector can build trust and security. This can happen while still encouraging innovation.
If you’d like to discuss the possibility of working together, please get in touch here.
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