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What is sovereign cloud?

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Overview

Data sovereignty is no longer just a compliance checkbox; it’s a strategic imperative. Sovereign cloud is a transformative approach to cloud infrastructure that empowers governments, businesses, and highly regulated industries to retain full control over their data in alignment with local laws and jurisdictional requirements.

Sovereign cloud

What is the definition of sovereign cloud?

Sovereign cloud refers to cloud services that are architected, operated, and governed to ensure all data—including metadata—remains within a specific legal jurisdiction. This typically means data is stored, processed, and managed by a local provider or a global cloud provider with local operations that meet strict sovereignty controls including data residency, access, and regulatory compliance. Unlike traditional public cloud models, sovereign cloud ensures that no unauthorized access occurs. It enforces strong legal and operational barriers to ensure data privacy and control at all times.

Why is sovereign cloud important?

The importance of sovereign cloud has grown in response to increasing data privacy regulations in different geographies. These laws create complex rules around how data must be handled across borders.

For businesses operating in multiple countries or in regulated sectors like healthcare, finance, or public services, ensuring compliance is not just about avoiding fines; it’s about maintaining customer trust, operational integrity, and national security.

Key reasons sovereign cloud is critical today:

  • Regulatory compliance: Ensures adherence to national and regional data privacy laws.
  • Data residency: Guarantees that data never leaves the designated legal jurisdiction.
  • Security and access control: Prevents foreign access through technical and legal safeguards.
  • Digital autonomy: Reduces reliance on foreign tech infrastructure and enhances national resilience.

What are the business benefits of sovereign cloud?

Beyond compliance and data protection, sovereign cloud delivers tangible business advantages that support innovation and resilience.

Enhanced trust and brand reputation

By demonstrating a commitment to data protection and national regulations, organizations can strengthen their reputation among customers, regulators, and partners. Trust becomes a competitive differentiator.

Reduced legal risk

With sovereign cloud, businesses significantly reduce the risk of non-compliance penalties, legal disputes, and data breach liabilities—all of which can have long-term financial and reputational consequences.

Operational resilience

Sovereign cloud infrastructure is designed to ensure continuity even in times of geopolitical disruption, cyber incidents, or supply chain failures.

Faster time to compliance

Navigating local laws can be complex. A sovereign cloud provider with in-region expertise can accelerate the path to compliance and reduce the internal burden on legal and IT teams.

What should customers look for in a sovereign cloud provider?

Whether you’re evaluating a local provider or a global operator with sovereign cloud capabilities, here are the key factors to consider:

Jurisdictional control:

Make sure the provider guarantees that your data and its metadata remains under the control of the country or region in which you operate. Verify their legal ownership, infrastructure location, and operational control.

Compliance certifications:

Look for compliance with industry-specific and national regulations (e.g., GDPR, HIPAA, ISO 27001, FedRAMP). These certifications demonstrate the provider’s commitment to maintaining high security and regulatory standards.

Data-access restrictions:

Confirm that the provider enforces strict controls on who can access your data and from where. This includes role-based access, encryption, audit logs, and customer-controlled keys.

Operational transparency:

The provider should offer full transparency into their operations, including data flows, third-party partnerships, and incident response procedures.

Local partnerships:

Look for providers that work with or are embedded within local ecosystems, including telecoms, government agencies, and regulated industries. This increases trust and compliance alignment.

Service performance and scalability:

Sovereignty shouldn’t come at the expense of performance. Ensure the provider can deliver enterprise-grade reliability, scalability, and support.

Does OpenText offer sovereign cloud capabilities?

Yes, OpenText™ Private Cloud offerings help you operate globally while maintaining strict control over your data and meeting regional data sovereignty demands. With data centers strategically placed across key regions—including Canada, the UK, Germany, France, and Australia—OpenText provides organizations the flexibility to choose where their data resides. As data sovereignty and AI become boardroom priorities, we are making it easier for businesses to comply with data-protection regulations so you can leverage AI with confidence that the data it uses is secure and compliant.

OpenText Private Cloud solutions provide tailored environments that ensure compliance while offering the highest levels of security. Key benefits include:

Dedicated, single-tenant environments offering maximum isolation and enhanced security for sensitive data.

Customizable deployment options to meet specific regulatory and operational requirements.

End-to-end encryption, including customer-controlled key management to maintain the integrity and confidentiality of data.

Comprehensive compliance support for global standards, such as ISO 27001, HIPAA, and IRAP, among others.

OpenText Private Cloud is part of our larger cloud ecosystem offering seamless integration between public cloud services, on-premises systems, and hybrid or multicloud environments, making it easier for organizations to align their IT infrastructure with their business goals.

Related products

OpenText™ Sovereign AI and Sovereign Private Cloud

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