PUBLISHER: Grand View Research | PRODUCT CODE: 1772494
PUBLISHER: Grand View Research | PRODUCT CODE: 1772494
The U.S. sovereign cloud market size was estimated at USD 30.43 billion in 2024 and is projected to reach USD 197.81 billion by 2033, growing at a CAGR of 23.4% from 2025 to 2033. Rising concerns over data sovereignty, cybersecurity, and regulatory compliance drive market growth. Government agencies and enterprises are adopting sovereign cloud solutions to ensure that data remains within national borders and complies with domestic regulations.
Strategic shifts in federal cloud adoption have accelerated the market, with agencies adopting multi-cloud architectures and integrating advanced technologies such as AI to enhance operational efficiency and security. Leading cloud providers, including Google in partnership with Worldwide Technology, deliver tailored sovereign cloud offerings to meet the high-security demands of government clients. AWS, Microsoft, and Oracle are investing in U.S. government cloud regions, highlighting the critical role of sovereign cloud infrastructure in supporting national security and sensitive workloads.
For instance, Amazon Web Services (AWS) invested USD 10 billion in North Carolina to expand its cloud and AI infrastructure, aiming to bolster regional digital capabilities. Such investments not only enhance service delivery but also address concerns related to data residency and sovereignty. Therefore, the U.S. market is poised for continued expansion, supported by a regulatory environment emphasizing data protection. As organizations prioritize digital transformation while adhering to stringent compliance requirements, the demand for sovereign cloud solutions is expected to rise.
The U.S. sovereign cloud industry is poised for substantial growth, fueled by federal directives emphasizing data localization, national security, and autonomy from foreign influence. Government agencies across defense, intelligence, and civilian domains increasingly adopt sovereign cloud solutions that align with stringent compliance frameworks such as FedRAMP High and ITAR. Furthermore, the Department of Defense's Joint Warfighting Cloud Capability (JWCC) initiative intensifies demand by mandating secure, multi-vendor cloud environments for handling mission-critical operations. These developments are playing a pivotal role in accelerating the adoption and expansion of sovereign cloud infrastructure in the U.S.
U.S. Sovereign Cloud Market Report Segmentation
This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the U.S. sovereign cloud market report based on deployment, functionality, enterprise size, and end-use: