SAP Labs India Commits €194 Million for Second Bengaluru Campus, Eyes AI-Led Innovation

SAP Labs India has announced a major expansion with a €194 million (approximately $224.65 million USD) investment to establish its second campus in Bengaluru, reinforcing its commitment to India as a strategic innovation hub. The new facility, located in Devanahalli near Kempegowda International Airport, spans 41 acres and is set to become one of SAP’s largest global campuses.

Named the SAP Labs India Innovation Park, the campus is designed as a “living lab” to foster co-innovation across SAP’s ecosystem—including customers, partners, academia, and startups. It will host the full spectrum of SAP’s product operations, with a strong focus on AI-driven enterprise solutions ranging from S/4 HANA to sustainability platforms.

Currently housing 3,200 employees, the campus will accommodate 4,500 professionals in its first phase, with full capacity expected to reach 15,000 by Q3 2028. This expansion complements SAP’s existing Whitefield campus and strengthens its position as SAP’s largest R&D center outside Germany, with over 17,000 employees already contributing to global product development.

SAP’s leadership emphasized the strategic importance of India in its global innovation roadmap. Sindhu Gangadharan, Managing Director of SAP Labs India, highlighted the country’s pivotal role in shaping next-generation enterprise technologies. Thomas Saueressig, SAP SE Executive Board Member, described the new campus as a “strategic asset” for delivering enterprise-grade AI and data solutions.

The investment aligns with SAP’s broader push into generative AI, with 75% of its engineers undergoing AI training and 90% already leveraging AI tools to enhance productivity. The company aims to double client productivity gains from 20% to 40% by the end of the year through AI-led transformation.

This move not only underscores SAP’s long-term commitment to India’s tech ecosystem but also signals a bold step toward redefining enterprise innovation through AI and collaborative development.