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Data sovereignty is becoming a bigger challenge than ever – so what steps can businesses take?

Craig Hale

19 September 2025

Data sovereignty is becoming a critical risk for many firms

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100% of leaders are now reconsidering data location due to sovereignty risks
Many are considering multicloud models and sovereign data centers
Balancing public cloud with sovereign storage is the way forward

New research from Pure Storage has revealed data sovereignty is now much more than a technical issue – it’s a critical business and geopolitical risk.

The firm’s survey found 100% of business leaders are now reconsidering data location due to sovereignty risks, with 92% agreeing that geopolitical shifts heighten exposure.
Nearly four in five (78%) also note they’ve already started including sovereignty within their strategies, including multicloud models, sovereign data centers and governance clauses.

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Data sovereignty is a critical business risk
The report blamed the AI race for an increased focus on data sovereignty, with many nations now building sovereign cloud to ensure data security. Regulatory changes across markets and ongoing geopolitical tensions have also caused companies to reconsider their strategies.

Pure Storage notes how reputational damage could come from inadequate sovereignty planning, with loss of customer trust emerging as the ultimate consequence of inaction. Revenue loss, regulatory penalties and irreparable stakeholder trust damage were also noted.
The report’s recommendation is that companies explore hybrid strategies, keeping critical workloads sovereign and using public cloud for the rest, which strikes a strong balance between performance and affordability.
“A balanced strategy optimises reducing risk while maintaining speed of innovation and organisational resilience,” Pure Storage International CTO Alex McMullan said.

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“This requires a proactive and a thoughtful process that analyses the risk landscape to identify which services and data sets are most critical and sensitive, place these workloads in sovereign environments, while leveraging public cloud for less crucial functions,” the report goes on to explain.
Further strategic risk assessment and proactive preparation for regulatory evolution, the company said, will help ensure companies can gain a competitive advantage moving forward.
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With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!

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Act now on Europe’s data sovereignty

Geopolitics is forcing the data sovereignty issue and it might just be a good thing

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Cloud sovereignty in Europe and beyond: a tipping point?

The rise of sovereign clouds: no data portability, no party

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