Navigating Sovereign Cloud in Europe: Strategic Considerations for Cloud Transition and Compliance

A whitepaper prepared by Corin Bishop & James Marks - September 2025

Executive Summary

European digital sovereignty has evolved from a regulatory consideration to a business-critical imperative that fundamentally shapes how organisations operate in the modern digital landscape. As data protection regulations intensify and geopolitical tensions influence technology choices, sovereign cloud adoption has become essential for maintaining competitive advantage while ensuring compliance across diverse regulatory frameworks.

The global sovereign cloud market demonstrates remarkable growth potential, expanding from USD 96.77 billion in 2024 to a projected USD 648.87 billion by 2033, representing a compound annual growth rate of 23.8%. According to Grand View Research, this trajectory reflects the urgent need for organisations to balance operational efficiency with regulatory compliance, data sovereignty, and operational independence from foreign jurisdictional control.

Sovereign cloud represents more than geographic data residency; it encompasses a comprehensive approach to digital autonomy that addresses legal jurisdiction, operational independence, and long-term business resilience. Organisations transitioning to sovereign cloud architectures must navigate complex regulatory landscapes while maintaining the agility and innovation capabilities that modern cloud computing provides.