Cloud sovereignty without compromise

A person checking a  server
  • Insight
  • 10 minute read
  • January 14, 2026
94%

plan to adjust cloud architecture and coverage.

82%

refine cloud due to geopolitics and regulation.

86%

see agentic AI as decisive in provider choice.

Cloud sovereignty is moving from a compliance checkbox to a board‑level imperative. As organisations accelerate digital transformation and adopt AI, leaders must protect sensitive data, meet local regulatory requirements, and build resilience without sacrificing innovation. The PwC and Microsoft playbook explains how sovereignty enables speed and scale by strengthening control over where data resides, who can access it, and how it is processed. In doing so, it helps organisations navigate geopolitical uncertainty and cyber risk while sustaining trust. 

Adapting faster

As one of the defining themes of the new era of cloud, sovereignty is far more than a compliance exercise. It enables organisations to innovate on their own terms. By placing data access and control firmly in their hands, organisations can maximise the value of rapidly advancing cloud and AI capabilities, while keeping technology choices open and future‑ready.

Balancing functionality and control

A new generation of sovereign public, private, and partner cloud solutions allows organisations to retain control of their data while still benefiting from the scalability, security, and optimised performance of hyperscaler cloud services. This blended approach helps reconcile regulatory demands with the need for agility and innovation.

Capitalising on the sovereign potential

This report explores how sovereignty is driving a fundamental rethink of cloud strategies and regulation, alongside the innovative solutions emerging to meet these demands. It outlines five priority steps for navigating the sovereign cloud journey and shows how partners such as PwC and Microsoft can help organisations transition to sovereign cloud without compromise.

Four in‑depth market spotlights examine sovereignty’s contrasting impact across Switzerland, Germany, the Middle East, and France.

Five key steps along the sovereign cloud journey

With so much of an organisation’s transformation and wider business goals hinging on cloud capabilities, defining a sovereign cloud strategy cannot be left to technology teams alone. It requires active input and sponsorship from business, compliance, and data leaders. To turn ambition into advantage, organisations should:

  1. Define the sovereign strategy
  2. Tailor models to strategic goals
  3. Set clear and realistic boundaries
  4. Design the cloud architecture
  5. Build strategic partnerships

Bring sovereignty into your cloud strategy

Get the PwC–Microsoft playbook and 5‑step guide

Contact us

Marc Hanlon

Marc Hanlon

Director, PwC Ireland (Republic of)

David Lee

David Lee

Chief Technology Officer, PwC Ireland (Republic of)

Robert Byrne

Robert Byrne

Partner, PwC Ireland (Republic of)

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