Sovereign Cloud in Asia/Pacific: 2025 Market Update

This Market Perspective shows that the Asia/Pacific region is witnessing a surge in sovereign cloud adoption, driven by regulatory compliance, operational resilience, and digital sovereignty needs. Despite challenges such as high costs and complexity, investments are growing, with major hyperscalers expanding localized offerings. Countries such as Australia and South Korea lead in maturity, while emerging markets show potential. Sovereign cloud solutions are pivotal for addressing data sovereignty, security, and compliance, enabling organizations to navigate evolving regulations and foster innovation in a dynamic digital landscape."Sovereign cloud is reshaping Asia/Pacific's digital future, balancing compliance, security, and innovation amidst evolving regulations and geopolitical complexities. As AI adoption continues to grow, sovereign cloud emerges as pivotal for data sovereignty and operational resilience in the region's digital transformation," says Daphne Chung, research director, Asia/Pacific Cloud Services and Software, IDC.