SAP Labs India has significantly expanded its presence in Bengaluru with the inauguration of a second campus, backed by a substantial €194 million investment spread across multiple phases. This strategic move underscores India's growing importance in the global technology landscape and solidifies its position as a critical hub for innovation, particularly in the field of artificial intelligence. The new 41-acre campus, located in Devanahalli near the city's international airport, will eventually accommodate up to 15,000 employees and is poised to become a cornerstone of SAP's global research and development network. The inauguration marks a major milestone for SAP's operations in the country, which began in 1998, and reflects the company's "AI first" strategy.[1][2][3][4][5]

The development of the new campus, named the India Innovation Park, is a multi-phase project.[6] The first phase, which is now operational, involved an investment of €80 million and has already seen 3,200 employees move in, with plans to increase this to 4,500 in the coming months.[7][8][9][10][2] Approvals for the next phase are already in place, with a targeted completion by the third quarter of 2028.[2][5] This expansion is not merely about increasing headcount; it is a strategic decision to leverage India's vast talent pool and its burgeoning digital ecosystem.[4] India is SAP's largest R&D location outside of its headquarters in Walldorf, Germany, and is home to 40% of the company's global R&D workforce.[11][8][12][13] The Bengaluru hub is unique in that it covers the entire breadth of SAP's product portfolio, from enterprise resource planning and customer experience to sustainability solutions and business networks.[11][9][14] The proximity of the new campus to major clients like Unilever, Shell, and Boeing is expected to foster a vibrant ecosystem of co-innovation.[15][16][17][18]

A central focus of the new campus and SAP's broader strategy in India is the advancement of artificial intelligence.[4][5] The company is heavily invested in developing custom AI and multi-agent AI technologies to drive business transformation for its global customer base of 450,000.[11][7][8][10] SAP Labs India is at the forefront of this initiative, with teams dedicated to building innovations across the entire product portfolio.[11][8][19] The goal is to embed AI capabilities into all of its solutions, helping clients to enhance productivity and reimagine their business processes.[8][12] To this end, SAP Labs India has been actively expanding its AI talent base, with plans to double it to further infuse its portfolio with AI-driven features.[20] The development of AI and machine learning solutions, such as fraud detection in expense management and quality control in production lines, heavily relies on the vast amounts of data processed through SAP's cloud solutions, with many of these innovations originating from the Bengaluru center.[15][18]

Beyond its technological ambitions, the new Devanahalli campus is designed with a strong emphasis on sustainability, employee wellness, and inclusivity.[16][13] The 41.07-acre site is being developed with the goal of being water-positive and carbon-neutral in its operations.[21] This aligns with a broader corporate trend among tech companies in India to create environmentally responsible workspaces.[22] The existing SAP Labs campus in Whitefield, for instance, already boasts 60% green cover, operates on 98% green energy, and has implemented initiatives like in-house composting of organic waste.[23][22][24] The new campus will continue this commitment with features like solar panel installations and advanced heating, ventilation, and air-conditioning systems to minimize its ecological footprint.[22] This focus on a holistic and sustainable work environment is a key part of SAP's strategy to attract and retain top talent in a competitive market.[16][12]

In conclusion, the inauguration of SAP Labs India's second campus in Bengaluru represents a significant investment in the future of technology and innovation in the country. With its focus on expanding its R&D capabilities, particularly in the realm of artificial intelligence, and its commitment to creating a sustainable and collaborative work environment, SAP is positioning its Indian operations as a crucial driver of its global growth strategy. The expansion is set to create thousands of jobs, foster co-innovation with customers and partners, and further solidify India's reputation as a world-class technology hub shaping the digital blueprint of the world.[4][13]