• Here's an alternative which is worth testing:

    DECLARE @String VARCHAR(2000) = 'the quick brown fox'

    SELECT

    REPLACE(REPLACE(REPLACE(REPLACE(REPLACE(REPLACE(REPLACE(REPLACE(REPLACE(REPLACE(REPLACE(REPLACE(REPLACE(

    REPLACE(REPLACE(REPLACE(REPLACE(REPLACE(REPLACE(REPLACE(REPLACE(REPLACE(REPLACE(REPLACE(REPLACE(REPLACE(

    ' ' + @String COLLATE LATIN1_GENERAL_BIN ,' z',' Z'),' y',' Y'),' x',' X'),' w',' W'),' v',' V'),' u',' U'),

    ' t',' T'),' s',' S'),' r',' R'),' q',' Q'),' p',' P'),' o',' O'),' n',' N'),' m',' M'),' l',' L'),' k',' K'),

    ' j',' J'),' i',' I'),' h',' H'),' g',' G'),' f',' F'),' e',' E'),' d',' D'),' c',' C'),' b',' B'),' a',' a')

    https://connect.microsoft.com/SQLServer/feedback/details/512459/replace-function-extremely-slow-with-non-binary-windows-collation

    “Write the query the simplest way. If through testing it becomes clear that the performance is inadequate, consider alternative query forms.” - Gail Shaw

    For fast, accurate and documented assistance in answering your questions, please read this article.
    Understanding and using APPLY, (I) and (II) Paul White
    Hidden RBAR: Triangular Joins / The "Numbers" or "Tally" Table: What it is and how it replaces a loop Jeff Moden