1H25 Sovereign Cloud Global Market Developments

1H25 saw significant developments in the global sovereign cloud market, driven by heightened geopolitical tensions, regulatory shifts, and the growing need for digital sovereignty. Organizations worldwide are prioritizing compliance, data localization, and AI governance to secure control over critical digital assets. Regional initiatives in Asia/Pacific, Europe, and MEA reflect strategic investments in sovereign infrastructure, emphasizing resilience, trust, and innovation. Sovereign cloud continues to evolve into a layered ecosystem, balancing control with interoperability to address the complex demands of sovereignty-conscious customers. "Digital sovereignty is no longer theoretical - it's a strategic imperative reshaping cloud and AI services amid rising geopolitical, regulatory, and technological complexities. It is becoming a foundational requirement for digital transformation and, beyond regulatory compliance, it is a strategic enabler of trust, resilience, and innovation." - Research Director Rahiel Nasir, IDC European Cloud Strategies and Lead Analyst, Worldwide Digital Sovereignty