SAP Data Center Set to Revolutionize India’s Digital Economy


In a groundbreaking move set to enhance the digital landscape of India, SAP, a global market leader in enterprise application software, has revealed plans to make its wide array of cloud offerings available through a local SAP data center. Scheduled for availability from mid-2024, this initiative is a nod to the country’s regulatory landscape and is designed to mitigate risks while fostering an environment of trust and resilience for mission-critical business applications.

In response to the data processing and storage requirements that significantly impact various segments of SAP’s clientele in India, the company’s decision to establish a local data center is both strategic and timely. By hosting popular cloud solutions such as SAP S/4HANA Cloud, SAP Business Technology Platform, SAP SuccessFactors, and SAP Ariba within India’s sovereign borders, SAP aims to fortify its position in the nation’s rapidly evolving digital economy.

Ashwini Vaishnaw, India’s Minister for Railways, Communication, Electronics & Information Technology, appreciates SAP’s commitment to the country’s digital transformation. Reflecting on the Prime Minister’s vision of a Digital India, Vaishnaw acknowledges that SAP’s expansion into locally based data centers aligns well with the country’s ambitions.

Furthermore, Thomas Saueressig, responsible for SAP Product Engineering, emphasized India’s impending rise as the third-largest global economy. He highlighted how SAP’s cloud strategy, which already influences 60% of India’s GDP, would further benefit from an India-based data center. This local presence is positioned to aid organizations in transforming their operations and innovating in the cloud.

Collaboration and Innovation: The Heart of SAP’s Strategy

SAP’s upcoming data center in India will operate in collaboration with cloud service providers that have the endorsement of the Ministry of Electronics and Information Technology, Government of India. This ensures the in-country residency of both business-critical and personal data.

Kulmeet Bawa, President & Managing Director of SAP Indian Subcontinent, emphasizes that the establishment of the data center underscores SAP’s enduring partnership with customers, businesses, and the government in realizing a self-reliant, Digital India. The new development stands as an infrastructure backbone for businesses across the spectrum, facilitating the creation of novel customer experiences and scaling innovation.

Sindhu Gangadharan, Senior Vice President and Managing Director at SAP Labs India, sees the India-based data center as a historic milestone for SAP in the country. Describing data as the cornerstone of the digital age, Gangadharan is confident that the center will be the foundation for innovation and growth for SAP’s customers.

SAP Data Center Builds on Global Cloud Momentum

India is not just one of the fastest-growing cloud markets for SAP but also hosts its largest R&D base outside Germany, boasting a workforce of 15,000 employees. The new data center is poised to build upon SAP’s established global cloud momentum, which witnessed cloud services emerging as the company’s primary revenue stream in 2022.

SAP’s decision to invest in an Indian data center is a testament to its commitment to addressing the challenges faced by its customers. From fostering cloud-based innovation to strengthening supply chain resilience and incorporating sustainability into business cores, SAP is striving to remain at the forefront of technological solutions.

The introduction of an SAP data center in India marks a significant stride in the company’s journey towards supporting and empowering the nation’s burgeoning business landscape. By seamlessly integrating and adapting to the country’s regulatory framework and addressing the needs of the digital economy, SAP’s cloud solutions are also poised to catalyze progress and pave the way for a digitally empowered India.

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