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The Backbone of Digital Government: A Sovereign AI Platform for the Federal Government

The Federal Ministry for Digitalization and State Modernization has commissioned Telekom and SAP, as the top-ranked bidders, to develop a sovereign AI platform.
E3 Magazine
August 17, 2026
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Google and Adesso had withdrawn their objections to the award. This clears the way for an AI platform that, for the first time, offers the federal government, states, and municipalities a shared infrastructure.

As the top bidder, Deutsche Telekom, together with SAP, was awarded the contract by the Federal Ministry for Digitalization and State Modernization (BMDS) for the tender to „Provide PaaS Services for AI Applications on a High-Performance, Secure, and Sovereign Cloud Platform.“ The contract was awarded to a consortium led by SVA System Vertrieb Alexander, together with Codesphere and StackIT (Schwarz Digits), as the second-ranked bidder.

Hub of Public Administration

The AI platform is designed to serve as a central hub for the entire public administration: scalable, expandable, and capable of integrating with existing specialized systems. What begins today as infrastructure will become tomorrow’s development environment for new AI-powered administrative services. Among the first applications is Kipitz, an AI solution that supports administrative staff in intelligent document processing, knowledge management, translations, text summarization, and the acceleration of planning and approval processes. The platform integrates AI services, development environments, and interfaces to existing specialized systems. It is operated on Telekom’s sovereign infrastructure.

„Digital Sovereignty and Artificial Intelligence"
”belong together."

Christian Klein,
Chairman of the Board,
SAP

For SAP, too, the initiative underscores the strategic importance of sovereign AI infrastructure: „Digital sovereignty and artificial intelligence go hand in hand. This is exactly where this initiative comes in: We’re leveraging our strengths in business processes, data, and trustworthy AI through the SAP Business AI Platform to work with Telekom to accelerate innovation in the public sector—securely, scalably, and in line with a common standard for municipalities, states, and the federal government as part of the Deutschland-Stack,“ says Christian Klein, CEO of SAP. The goal is for public authorities to build on common technical standards and platforms in the future, rather than developing many individual solutions. This is intended to make public administration more modern, secure, and efficient.

The Germany Stack as a Foundation

The total contract value for the new AI platform is just under 250 million euros. The platform enables containerized AI applications ranging from specialized processes to assistance systems and generative services. It supports the development of the Deutschland-Stack by applying the sovereignty, security, and architectural principles defined therein to AI solutions. (Sources: Deutsche Telekom, Federal Ministry for Digital and Government Modernization)

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