Published on: June 11, 2025 / update from: June 11, 2025 - Author: Konrad Wolfenstein
Cloud Hyperscaler: Analysis of the criticism of SAP boss Christian Klein and the European innovation potential-Image: Xpert.digital
Digital independence in Europe: Why Christian Klein's data center skepticism falls too short
European cloud sovereignty: Klein's provocative hyperscal criticism and the reality of the EU digital strategy
SAP boss Christian Klein has initiated an important debate about the digital sovereignty of Europe with his provocative statement about European data center ambitions. His assessment that "many new data centers with EU funding in Europe will not create a counterweight to the US hyperscalers" deserves a differentiated view. While Klein's criticism of uncoordinated infrastructure investments is entitled, it overlooks the specific strengths and innovative approaches with which Europe develops competitive alternatives. The European cloud strategy is not primarily based on attempting to replicate the sheer of American hyperscals, but on sustainable, data protection-compliant and interoperable solutions that are driven by initiatives such as GAIA-X, specialized high-performance computing projects and innovative business models of European providers.
Suitable for:
Klein's criticism in the context of European realities
Christian Klein's drastic warning about European data center projects reflects real challenges. His statement that “the competitiveness of the European auto industry or the chemical industry is not achieved by building 20 different data centers in France” is an important point regarding the efficiency of resource allocation. Klein argues that Europe should play its strengths in the use of AI and intelligent software instead of getting caught up in costly infrastructure battles.
Energy costs are actually a significant challenge. According to the EU Commission, the energy consumption of data centers in the European Union 2018 was already 76.8 TWh and is expected to increase by 28% to 98.5 TWh by 2030. These numbers underline Klein's argument about the cost disadvantages of European locations. SAP itself remains “completely infrastructure-tag” and offers various safety stages without participating in hardware battles.
Nevertheless, Klein's own corporate strategy shows the ambivalence of his position. Despite his public criticism, SAP is planning a joint application to the EU for “huge data centers for AI applications” together with Deutsche Telekom, Ionos, the Schwarz Group and Siemens. This apparent contradiction indicates that even small the need for strategic European infrastructure investments recognizes when it is coordinated and expedient.
Suitable for:
European differentiation strategies and competitive advantages
Europe deliberately pursues a strategy other than the American hyperscaler, which relies on differentiation through regulation, sustainability and data sovereignty. The Gaia-X Initiative perfectly exemplifies this approach. Contrary to widespread misunderstandings, Gaia-X is “not a European cloud in the sense of a monolithic hyperscaler, but a framework that sets uniform architecture for infrastructure, standards and rules”.
The GAIA X concept aims to avoid lock-in effects and to create a “competitive, fair and trustworthy data economy”. This approach creates added value through the “reduction of dependencies” and enables companies to “free yourself from lock-in effects and switch their data between competing providers”. The initiative relies on “decentralized infrastructure instead of platform monopolies” and thus represents an alternative to American platform capitalism.
European cloud providers such as Ovhcloud and Ionos have already proven that alternative business models can work. Ovhcloud advertises with “fair, transparent and predictable prices without fees for incoming and outgoing data transmissions” and promises “no compromises” in technology and price-performance ratio. The company produces its own servers and operates over 30 own data centers worldwide, which enables complete control over the value chain.
The sovereign European Cloud API (SECA), initiated by Aruba, Ionos and Dynamo, shows further innovative strength. This “open cloud industrial standard api specification” promotes “digital sovereignty and independence of European companies” through improved “interoperability, scalability and security”. SECA enables companies to "provide seamless workloads and applications in various cloud environments of their choice", while at the same time “a maximum of safety, control and data sovereignty” is preserved.
Technological sovereignty through high-performance computing
While Klein warns of exaggerated data center ambitions, Europe's success in high-performance computing demonstrates the potential of coordinated technology investments. The Jupiter Supercomputer at the Jülich research center is an impressive example of European innovative strength. As a “fastest supercomputer in Europe”, Jupiter ranks 4th on the global TOP500 list and is also “the most energy-efficient system in the top 5”.
Jupiter's meaning goes far beyond technical specifications. With its “enormous computing capacity, Jupiter opens up new possibilities in a wide range of applications” from climate simulation to the development of sustainable energy systems. The system can train “largest AI models (Large Language Models)-at full occupancy, Jupiter needs less than a week”.
The EuroHPC Joint Undertaking shows how strategic European cooperation can work. This initiative "bundles the resources of the European Union, 32 European countries and three private partners with the aim of making Europe a world market leader in supercomputing". With an increased budget of 8 billion euros, EUROHPC has already acquired “five PETA supercomputers who are able to carry out at least 10^15 calculations per second”.
Sustainability as a strategic competitive advantage
An area in which Europe develops clear advantages over American hyperscalers is sustainability. With its delegate Ordinance on the Energy Efficiency Directive, the EU Commission has created “efficiency requirements for data centers” that “establish“ a common EU assessment system ”. This system is intended to help “operators to increase energy efficiency” and “to promote the use of renewable energies, to use waste heat and to increase the efficiency of the power grid”.
The new Energy Efficiency Act (ENEFG) obliges data center operators "to cover their electricity consumption from 2027 to a hundred percent of renewable energies". These regulatory requirements not only create environmental advantages, but also competitive advantages for European providers who invested in sustainable technologies at an early stage.
Scientists from the eco-institute and the Fraunhofer IZM have "developed a holistic methodology for the first time that captures the environmental footprint of cloud services over the entire life cycle". This transparency enables European providers to differentiate themselves by demonstrably lower environmental effects. The studies already show “a wide range” for CO2 emissions from various providers, which creates space for competitive advantages through efficiency.
Regulation as an innovation driver and market differentiation
Klein's criticism of European regulation overlooks their innovative effects. The GDPR and other European data protection laws have not only strengthened the protection of personal data, but also promoted new business models and technologies. European cloud providers can differentiate themselves by “real data sovereignty”, which can be “documented”.
The US Cloud Act is a structural problem for American providers, since “US authorities can order access to data outside the USA through the Cloud Act via authorities such as the NSA, CIA or the FBI”. This legal uncertainty creates market opportunities for European providers who can offer “a maximum of more protection against such regulations”.
Ionos as a “Day-1 Member” from Gaia-X has already brought “years of experience in the hard everyday operation of an IAAS cloud” and “With the Ionos High Performance Cloud Stack, offers a well-prepared basis for sovereign cloud computing”. This positioning shows how European companies can convert regulatory requirements into competitive advantages.
Suitable for:
Specialization instead of hyperscale competition
Europe's strength is not in direct competition with hyperscalers, but in specialization in specific areas of application and customer requirements. Hyperscale data centers are “exceptionally large and powerful facilities” that cope with “rapidly increasing demand for cloud computing services”. Their characteristics include “automated high -scaling”, “very large hybrid data centers” and “arbitrary scalable user numbers”.
However, European providers can compete through “maximum performance, scalability, redundancy, energy efficiency and the latest safety measures” without having to achieve the size of American hyperscal. Ovhcloud demonstrates this through his promise to offer “double VPS performance at even cheaper prices”, while at the same time “certainty in a world characterized by uncertainty” is created by “fair, transparent and predictable prices”.
The success stories of European customers show the potential of specialized approaches. LEETIFY was able to save about 50% of the costs with OVHCloud, while Iatros protects the “data of the patient in a highly secure and compliant public cloud environment” as a “AI-based, certified health app”.
Europe's path to digital sovereignty
Klein's criticism of uncoordinated European data center investments is justified, but his conclusion is too pessimistic. Europe develops competitive alternatives to American hyperscalers, but not through direct size competition, but through strategic differentiation. The combination of regulatory advantages, sustainable technologies, data sovereignty and innovative cooperation models such as GAIA-X creates unique market opportunities.
Jupiter's success in high-performance computing shows that Europe is quite able to achieve technological world leaders when resources are coordinated and used strategically. The European Cloud strategy should therefore not be considered a failed, but as a conscious alternative to American business models that focus on transparency, sustainability and data protection.
Klein's own plans for common AI data centers ultimately show that skeptical voices also recognize the need for European infrastructure investments. The key lies in the intelligent coordination and specialization, not in avoiding digital sovereignty. Europe has the potential to survive as an innovative competitor in the global cloud market-if it plays its specific strengths consistently.
Suitable for:
Your AI transformation, AI integration and AI platform industry expert
☑️ Our business language is English or German
☑️ NEW: Correspondence in your national language!
Konrad Wolfenstein
I would be happy to serve you and my team as a personal advisor.
You can contact me by filling out the contact form or simply call me on +49 89 89 674 804 (Munich) . My email address is: wolfenstein ∂ xpert.digital
I'm looking forward to our joint project.
