Companies say data sovereignty is important, yet many businesses see it as a burden

LovabledanielsJanuary 29, 202567 Views

51% of British businesses consider data sovereignty “crucial”, report claims
Nearly equal measures see it as a burden or as an asset, OVHcloud finds
Data access, handling, storage, and portability are all benefits

New research has revealed the growing need for data sovereignty, influenced by ongoing geopolitical tensions and market competition investigations.

A report from cloud computing giant OVHcloud found half (51%) of British businesses now consider data sovereignty as a crucial part of their data management strategies.

Moreover, three in four (77%) IT decision-makers now say that data sovereignty is more important than it was three years ago.

Data sovereignty is at the heart of building customer trust

Exactly why businesses are so keen on data sovereignty varies, though – two in five (40%) see it as a compliance issue, but more than one-third (36%) said that it involves data access, handling, and storage. A further 28% said sovereignty is related to data portability.

Data sovereignty has gained popularity in recent years following America’s battle with China and investigations into the dominance of American hyperscalers over global cloud markets – in 2024, AWS confirmed it would be supporting European data sovereignty, choosing Germany as its first location.

“Having a robust data sovereignty strategy means that you know who controls your data, where it is, who has access to it, and which regulations it’s subject to,” noted OVHcloud multi-cloud evangelist Matt Tebay.

Of the 500 IT decision-makers surveyed, 41% said it’s just something they need to comply with, however, 42% added data sovereignty is important to their customers, and therefore an asset to their business.

“Organisations are increasingly realizing that it’s not simply a cost and regulatory burden, but can build better customer trust, enhance governance, and provide a layer of security and transparency to customers,” Tebay added.

“Clearly, the intersection of customer trust, technology, regulation, and commercial considerations can make for a challenging journey, but it’s an important one and like all journeys, the first step is the most important.”