European Firms Seek Sovereign Clouds for Compliance and Resilience
As regulatory pressures mount and the demand for digital autonomy rises, European enterprises are increasingly adopting sovereign cloud solutions to navigate stricter regulations, geopolitical risks, and the growing need for data sovereignty and transparency. According to a recent report by Information Services Group (ISG), the shift from niche deployments to foundational infrastructures capable of supporting workloads, services, and AI platforms under EU jurisdiction is transforming the cloud landscape.
The Shift in Cloud Solutions
European enterprises are reclassifying sovereign cloud from a mere compliance safeguard to a core infrastructure component. This transition is largely driven by regulatory enforcement, security concerns, and the integration of AI technologies, prompting organizations to seek resilient, transparent, and locally governed cloud platforms for their critical workloads.
Key Selection Criteria
When choosing sovereign cloud platforms, enterprises now prioritize:
- Regulatory alignment
- Operational resilience
- Commercial transparency
These criteria are particularly significant in highly regulated industries. Organizations are looking for multizone EU-based infrastructures, customer-managed encryption keys, and policy-driven services that facilitate secure DevOps and disaster recovery. Moreover, enterprises are demanding clear pricing models that provide visibility into capacity commitments, infrastructure usage, and long-term costs—especially for public sector deployments.
The Role of AI in Sovereign Cloud Adoption
The acceleration of AI adoption is intensifying the demand for sovereign AI infrastructure to support training, inference, and deployment within the EU framework. Providers are increasingly integrating zero-trust architectures, automated compliance tools, and real-time threat detection into their solutions to mitigate risks associated with insider threats and foreign surveillance.
Strengthening Cloud Security
To enhance cloud security, organizations are implementing air-gapped environments, external key management systems, and confidential computing. Procurement teams are showing a preference for European-owned cloud providers to reinforce governance, minimize legal risks, and achieve operational independence from entities outside the EU.
Comparative Analysis of Sovereign Cloud Services
Enterprises looking for sovereign cloud services are evaluating options based on data control, governance structures, and alignment with national requirements. Global cloud providers are ramping up investments in Europe, focusing on locally governed operating models that meet EU regulations. Regional providers are expanding local infrastructures tailored for regulated and public sector environments across key European markets.
Future Trends in Sovereign Cloud Adoption
As European enterprises deepen their integration of sovereign cloud into their IT strategies, regulations and risk management are currently the primary drivers of adoption. However, in the future, companies will likely seek services that offer features like open-source interoperability and sustainability compliance.
The report also highlights additional trends in European cloud adoption, including an increasing reliance on advanced encryption and compliance automation, as well as the development of sovereign cloud marketplaces that support flexible deployment models across Europe.
For further insights into the cloud-related challenges faced by European enterprises, the ISG report provides comprehensive advice for addressing these issues.
Conclusion
The 2025 ISG Provider Lens® Multi Public Cloud Services report evaluates the capabilities of 19 providers in the realm of Sovereign Cloud Infrastructure Services. Major players identified as leaders include AWS, Deutsche Telekom/T-Systems, Google, Microsoft, Oracle, Orange Business, and OVHcloud. In customer experience, LTIMindtree has been recognized as the global ISG CX Star Performer for 2025 among multi public cloud service providers, achieving the highest satisfaction scores in ISG’s Voice of the Customer survey.
