Christian Klein, CEO of SAP, is challenging Brussels’ strategy to pour billions into building AI “gigafactories” across Europe. In a pointed statement during a press conference, Klein questioned whether this massive infrastructure push truly addresses the continent’s tech needs. “Do we really need to build five data centers and fill them with chips? I doubt it,” he said, criticizing the European Commission’s €20 billion plan, which just received 76 site proposals from 16 countries.
Instead, Klein argues that Europe should double down on developing business-ready AI applications — particularly in sectors where the region already holds strong industrial expertise, like automotive, chemicals, and logistics. “No European customer has told me they’re lacking data centers. The issue is how to apply AI in their business context,” he said.
Klein believes Europe already has the infrastructure it needs and doesn’t need to play catch-up with the U.S. in chip manufacturing or data center capacity. What’s truly at stake, he says, is data control and application know-how — not who builds the physical infrastructure. In his view, digital sovereignty should be about who owns and controls the data, not whether the servers are European-made.
He proposes a more strategic approach: a European “Stargate” initiative focused on funding AI startups, scaling software solutions, and training talent — rather than duplicating existing hardware efforts. SAP, which isn’t seeking infrastructure funding itself, supports this application-first philosophy and is investing in AI at the software level, not in building data centers.
Klein’s remarks are a sharp reminder that Europe's competitive edge may lie not in steel-and-silicon megaprojects, but in turning deep industrial know-how into smart, AI-powered tools — and in doing so, leapfrogging rather than shadowing U.S. strategies.
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