Convert text in PascalCase

DECLARE @T TABLE
(
ID  INT PRIMARY KEY,
CITTA   VARCHAR(50)
)
INSERT INTO @T
SELECT 1, 'ABANO TERME' UNION ALL SELECT 2, 'ROMA' UNION ALL SELECT 3, 'ISOLA D''ASTI';

IF OBJECT_ID('tempdb..#HolderTable') IS NOT NULL
    DROP TABLE #HolderTable

CREATE TABLE #HolderTable
(
Idx INT IDENTITY(1,1) PRIMARY KEY,
ID INT,
Word  VARCHAR(50)
)

CREATE NONCLUSTERED INDEX ix ON #HolderTable(ID)
;

WITH T1 AS
(
SELECT ID, CAST(N'<root><r>' + REPLACE(REPLACE(CITTA, '''', '''</r><r>'), ' ', ' </r><r>') + '</r></root>' AS XML) AS xl
FROM @T
)
INSERT INTO #HolderTable
SELECT ID, 
       r.value('.','NVARCHAR(MAX)') AS Item
 FROM T1
 CROSS APPLY
xl.nodes('//root/r') AS RECORDS(r)

SELECT 
      ID, 
      (SELECT STUFF(LOWER(Word),1,1,UPPER(LEFT(Word,1))) FROM #HolderTable WHERE [@T].ID =  #HolderTable.ID ORDER BY Idx FOR XML PATH('') )
FROM @T [@T]

I encourage you to try the code I posted in a blog a while ago. I suspect it will accommodate your requirements very well, and also perform better than many of the other methods.

SQL Server Proper Case Function

CREATE FUNCTION dbo.Proper(@DATA VARCHAR(8000))
RETURNS VARCHAR(8000)
AS
BEGIN
  DECLARE @Position INT

  SELECT @DATA = STUFF(LOWER(@DATA), 1, 1, UPPER(LEFT(@DATA, 1))),
         @Position = PATINDEX('%[^a-zA-Z][a-z]%', @DATA COLLATE Latin1_General_Bin)

  WHILE @Position > 0
    SELECT @DATA = STUFF(@DATA, @Position, 2, UPPER(SUBSTRING(@DATA, @Position, 2))),
           @Position = PATINDEX('%[^a-zA-Z][a-z]%', @DATA COLLATE Latin1_General_Bin)

  RETURN @DATA
END

This function is a bit faster than most because it only loops once for each word that requires a capital letter.

Try the below function (adjust string type as appropriate). Just don't use this in a WHERE clause - and consider the performance ramifications elsewhere. The 12345678 is just some arbitrarily large value that you might want to replace with something more appropriate!

CREATE FUNCTION dbo.ufn_PascalCase(@str AS VARCHAR(MAX)) RETURNS VARCHAR(MAX)
BEGIN
    SET @str = LOWER(@str)

    DECLARE @result VARCHAR(MAX) = ''

    DECLARE @spaceIndex INTEGER = CHARINDEX(' ', @str)
    WHILE @spaceIndex > 0
    BEGIN
        SET @result += UPPER(SUBSTRING(@str, 1, 1)) + SUBSTRING(@str, 2, @spaceIndex - 2)
        SET @str = SUBSTRING(@str, @spaceIndex + 1, 12345678)
        SET @spaceIndex = CHARINDEX(' ', @str)
    END

    SET @result += UPPER(SUBSTRING(@str, 1, 1)) + SUBSTRING(@str, 2, 12345678)

    RETURN @result
END