Last week on November 19, Workday unveiled its EU Sovereign Cloud, which will be available to European customers in 2026.
The new cloud environment, which was built on AWS infrastructure, allows Workday’s European customers to use its AI-powered HR and finance solutions while maintaining data sovereignty in the EU.
Gerrit Kazmaier, president of product and technology at Workday, said the “EU Sovereign Cloud gives our customers the freedom to innovate and grow confidently—helping them harness the power of AI while knowing their data remains protected and compliant in an ever-changing world.”
Why the EU Sovereign Cloud Matters
EU regulations have moved beyond protecting personal data to governing how data is used, shared, and controlled. Just as the General Data Protection Regulation (GDPR) transformed how businesses could use EU consumers’ data in 2018, legislation such as the EU Data Act and EU AI Act change how businesses manage data and AI.
The EU Data Act, for example, requires companies to provide users with more control, portability, and transparency over their data. Meanwhile, the EU AI Act introduces safeguards against AI systems that could compromise users’ safety or rights.
Although the EU Data Act will not take full effect until 2026, and the EU AI Act not until 2027, Workday’s EU Sovereign Cloud appears well-placed to help customers maintain compliance as the regulations roll out and address new regulations as they emerge.
Angelique de Vries-Schipperijn, president of Workday EMEA, said, “Our customers can operate confidently and grow responsibly—knowing their most critical data remains protected within EU borders, and that Workday is by their side helping them navigate change with trust and transparency.”
How the Sovereign Cloud Supports AI Adoption
Business leaders across the world are examining how they can adopt AI to achieve greater efficiency, better margins, and a competitive edge in their industry.
But as Kazmaier explained, the challenge increasingly looked like a choice between “keeping pace with AI and maintaining strict compliance” for businesspeople in the EU.
The EU Sovereign Cloud from Workday eliminates this trade-off, enabling organizations to employ new AI tools to manage their data while staying compliant with EU regulations.
Workday’s new cloud offering keeps all customer data and operations within the EU and under EU-based personnel. Further, it is protected by encryption, audits, and oversight measures that help organizations meet best practices for data protection.
This lowers compliance risks related to cross-border data flows, as well as broader trust and security frameworks, for any organization with EU operations. But it also addresses compliance concerns for organizations that want to explore new AI technology.
As Workday develops its position as a leader in ERP-native automation, offering new AI tools and capabilities for customers, the new cloud platform ensures Workday users in the EU are able to automate routine tasks, improve workflows, and process data efficiently while keeping sensitive information fully within the EU and compliant with local regulations.
What This Means for ERP Insiders
Compliance and AI are no longer mutually exclusive. Workday’s new EU Sovereign Cloud allows its customers to maintain compliance with regulations without compromising on the AI-powered tools businesses need to innovate. It gives businesses the ability to explore AI safely and securely within the EU.
Workday ERP users in the EU are set for a higher ROI. Workday has expanded the AI capabilities embedded in its HR and finance modules, allowing users to automate, enhance, and process workloads more efficiently. The new cloud will allow EU users to leverage these tools, ensuring businesses see a stronger return on ERP investments.
Early sovereign cloud adoption is a strategic choice and competitive edge. The EU Sovereign Cloud will be available to Workday’s European customers in 2026. Customers that embrace an EU-compliant, AI-ready cloud will be able to innovate at a pace that is hard to match with global cloud-based ERPs.
