03 Dec Data sovereignty rises as global priority

New research from Pure Storage and the University of Technology Sydney (UTS) highlights a sharp rise in global concern over data sovereignty, with every industry leader surveyed now reconsidering data strategies as geopolitical and regulatory risks escalate. The qualitative survey, conducted across nine countries including key regional economies, found 100% of leaders have changed their approach to data location due to sovereignty concerns, and a staggering 92% cite geopolitical changes as driving this shift.

The results point to data sovereignty moving beyond compliance, emerging instead as a central business risk capable of impacting competitiveness, innovation and customer trust. Key findings show 85% of leaders see loss of customer trust as the most serious consequence of failure to address data sovereignty, and 92% warn of potential reputational damage. To mitigate risk, 78% are already adopting measures like multi-provider strategies, sovereign data centres, or enhanced governance in commercial agreements.​

Experts quoted in the research stress that the consequences of weak data sovereignty can include service disruption, regulatory penalties and lasting reputational harm. Pure Storage’s analysis advocates a hybrid strategy: risk-assess critical workloads; keep the most sensitive data in sovereign environments,; and leverage public cloud for less critical functions — balancing compliance, innovation and operational resilience.​

“The potential consequences of not having a modern and realistic data sovereignty strategy are acute. Loss of trust, financial damage and competitive disadvantage are possible outcomes that cannot be ignored… A balanced strategy optimises reducing risk while maintaining speed of innovation and organisational resilience,” said Alex McMullan, Chief Technology Officer, International, Pure Storage.

International experts involved in the study reinforced the urgency: “Sovereignty is no longer optional, it is existential,” said Gordon Noble, Research Director at UTS, while IDC Europe’s Archana Venkatraman described data sovereignty as a “critical business issue” for 2025 and beyond.