Data sovereignty is increasingly seen as a strategic business imperative rather than just a compliance requirement. New research by Pure Storage, in collaboration with the University of Technology Sydney (UTS), reveals that global industry leaders are re-evaluating data strategies in response to rising geopolitical uncertainty, regulatory evolution, and growing threats to operational continuity.
“Data sovereignty is no longer optional—it’s a business-critical priority.”
— Alex McMullan, CTO, International, Pure Storage
The survey of industry leaders across nine countries underscores the scale of concern:
- 100% reported that sovereignty risks, including potential service disruption, have forced a reconsideration of data location.
- 92% cited geopolitical shifts as a factor increasing sovereignty risks.
- 92% warned that inadequate planning could cause reputational damage.
- 85% highlighted the loss of customer trust as the ultimate consequence of inaction.
- 78% are adopting measures such as multi-service provider strategies, sovereign data centers, and stricter governance requirements.
“The potential consequences of not having a modern and realistic data sovereignty strategy are acute,” said Alex McMullan, CTO, International, Pure Storage. “A hybrid approach—keeping critical workloads in sovereign environments while using public cloud for less sensitive functions—balances risk management with innovation and agility.”
“Every leader we interviewed is rethinking data location. Sovereignty is no longer optional—it is existential.”
— Gordon Noble, Research Director, UTS Institute of Sustainable Futures
Organizations face a “perfect storm” of service disruption, foreign influence concerns, and evolving regulations. To address this, businesses must identify critical workloads, prioritize sovereign placement, and maintain flexibility for less sensitive operations.
“Data sovereignty has evolved from a technical challenge to a critical business issue,” added Archana Venkatraman, Senior Research Director, IDC Europe. “Organizations focusing on pragmatic strategies to enhance resilience and control can minimize dependencies, risks, and exposures.”
The research makes clear that sovereignty is no longer optional. Companies that proactively embed sovereignty into their data strategies are better positioned to maintain trust, ensure compliance, and safeguard competitiveness in an increasingly complex global landscape.