SAP & NTT team up on sovereign cloud for governments

SAP and NTT plan to cooperate on sovereign cloud services and SAP Business AI for governments, defence organisations and critical infrastructure operators.

Initially, the companies will focus on combining SAP Sovereign Cloud On-Site with infrastructure and operations managed by NTT in selected markets where customers need strong local control over data and systems.

SAP Sovereign Cloud On-Site is designed for organisations with strict sovereignty, regulatory and compliance requirements. It allows SAP-managed cloud software to run in a customer-owned or customer-selected data centre, supporting local physical control, data residency and operational assurance.

The approach is aimed at public sector bodies, defence industry groups, critical infrastructure operators and other regulated enterprises that want to modernise core processes while keeping sensitive data and operations under tighter control.

The planned work goes beyond where data is stored. It also addresses who controls the underlying operations and technology in jurisdictions where local oversight is a central requirement.

Sovereign focus

NTT is expected to provide infrastructure management and operational support, while SAP contributes its application portfolio and sovereign cloud model. Together, they aim to support customers in markets where legal and regulatory conditions place a premium on domestic control and assurance.

The scope also includes examining how artificial intelligence can be adopted in heavily regulated settings. SAP and NTT plan to explore wider opportunities for governments, critical infrastructure operators and other regulated industries to use AI in ways that meet sovereignty requirements.

This work is expected to centre on SAP Business AI, which could be applied to mission-critical processes in organisations that must balance modernisation with compliance and security obligations.

The announcement comes as governments and regulated industries face pressure to update ageing systems while keeping closer oversight of sensitive information, infrastructure and digital operations. Sovereign cloud models are drawing growing interest from organisations that want to use cloud-based software without giving up too much operational control.

In many cases, those requirements go beyond data residency to include assurance over staffing, operational processes and the physical environment in which systems run. Defence-related organisations and operators of essential services have been among the most cautious adopters of public cloud and AI tools because of these constraints.

For SAP, the cooperation reflects demand for cloud deployments that give customers more control than standard public cloud arrangements. For NTT, it offers another route into customers seeking managed infrastructure for sensitive workloads in regulated sectors.

Dominik Asam, member of the Executive Board and Chief Financial Officer at SAP, outlined the companies' position on the planned work. "With this cooperation, SAP and NTT aim to give customers a practical path to cloud and AI innovation while maintaining the control, governance and trust they require," said Asam.

He added: "For public sector organizations and regulated industries, sovereignty is not just a compliance requirement, it is the foundation for resilience, competitiveness and the responsible adoption of AI. Together, we want to help customers innovate while meeting their sovereignty requirements."

NTT also highlighted customer demand for AI tied to operational needs rather than broad experimentation. "Our customers are looking for practical ways to use AI to solve real business challenges and create new value," said Yutaka Sasaki, representative member of the Board, senior executive vice president and Chief Financial Officer, NTT.

"By combining SAP's business applications and AI capabilities with NTT's deep understanding of industry needs and mission-critical operations, we aim to help organizations transform how they work, make better decisions and accelerate business outcomes through AI," said Sasaki.