Data Sovereignty Emerges as Critical Business Risk in New Geopolitical Era

New research reveals majority of global industry leaders are reconsidering data strategies amid rising uncertainties and threats

Sydney, Australia?�C September 18, 2025?��?ɫ�ش�ý? (NYSE: PSTG),?the IT pioneer that delivers the world's most advanced data storage technology and services, today released new insights on data sovereignty in collaboration with the University of Technology Sydney (UTS). The analysis reveals how geopolitical uncertainty and regulatory evolution are transforming data sovereignty from a compliance issue into a fundamental business risk affecting competitiveness, innovation, and customer trust.

A qualitative pulse-survey of industry leaders across nine countries revealed unanimous concern about the risks of inaction around data sovereignty:

100% confirmed sovereignty risks, including potential service disruption, have forced organisations to reconsider where data is located
92% said geopolitical shifts are increasing sovereignty risks
92% warned inadequate sovereignty planning could lead to reputational damage
85% identified loss of customer trust as the ultimate consequence of inaction
78% are already embracing different data strategies, such as implementing multi service provider strategies; adopting sovereign data centers; and embedding enhanced governance requirements in commercial agreements

The survey identifies a "perfect storm" where service disruption risks, foreign influence concerns, and evolving regulations converge to create unprecedented exposure for businesses and nations. Organisations now face potential revenue loss, regulatory penalties, and irreparable damage to stakeholder trust if these risks are not proactively addressed.

Navigating Data Sovereignty Risk

The solution to the sovereignty challenge is not a binary choice between detaching from all public cloud services or an outright disregard for all risks associated with data sovereignty. ɫ�ش�ý recommends a more intentional assessment of organisations�� strategic objectives. This requires a proactive and a thoughtful process that analyses the risk landscape to identify which services and data sets are most critical and sensitive, and places these workloads in sovereign environments, while leveraging public cloud for less crucial functions. This balanced approach enables organisations to maintain compliance and control without sacrificing the innovation and agility that organisations need in order to remain relevant in today��s fast-paced business environment.

��The Access Group handles sensitive end-user data for our customers across the world, from the National Health Service in the UK to the Tax Department in Australia. Data sovereignty is an absolutely critical issue for us and our customers. In fact, they ask that it be written into our contracts. With Pure��s help, we are able to deliver sovereign Enterprise Data Clouds in each of our data centers around the world,�� said Rolf Krolke, Regional Technology Director, APAC, The Access Group.

��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. We recommend a hybrid approach to data sovereignty: start with a risk assessment across workloads, keep critical workloads sovereign, and use the public cloud for the rest. A balanced strategy optimises reducing risk while maintaining speed of innovation and organisational resilience.��

Alex McMullan

Chief Technology Officer, International, ɫ�ش�ý

ɫ�ش�ý��s perspective on data sovereignty is presented in a position brief which emphasises that successful navigation requires strategic risk assessment, hybrid approaches that combine sovereignty with innovation, and proactive preparation for regulatory evolution. Organisations taking action now position themselves for competitive advantage as sovereignty requirements expand globally.

"These are wake-up call numbers. Every single leader we interviewed is rethinking data location. The message is clear: sovereignty is no longer optional, it is existential," said Gordon Noble, Research Director at UTS's Institute of Sustainable Futures.

��Data sovereignty has evolved from a technical challenge to a critical business issue. Organisations that don��t address where their most important data and services are located risk service disruption, regulatory non-compliance, and reputational damage. We expect to see data sovereignty treated as a strategic priority in 2025 and beyond, to safeguard long-term business continuity and trust. Organisations that focus on pragmatic strategies to enhance data resilience, control and strategic autonomy can minimise dependencies, risks and exposures,�� said Archana Venkatraman, Senior Research Director, Cloud Data Management, IDC Europe.

About the Research ɫ�ش�ý commissioned the University of Technology Sydney to conduct qualitative interviews with experts and practitioners from across industry and the research sector in nine countries between July and August 2025.

The research covers Australia, France, Germany, India, Japan, New Zealand, Singapore, South Korea and the United Kingdom �C representing diverse regulatory and geopolitical landscapes where data sovereignty has become a defining factor for business success.

Additional Resources

To learn more, access Data Sovereignty: A New Era �C Navigating Risk in a Dynamic World

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About ɫ�ش�ý

ɫ�ش�ý (NYSE: PSTG) delivers the industry's most advanced data storage platform to store, manage, and protect the world's data at any scale. With ɫ�ش�ý, organisations have ultimate simplicity and flexibility, saving time, money, and energy. From AI to archive, ɫ�ش�ý delivers a cloud experience with one unified Storage as-a-Service platform across on-premises, cloud, and hosted environments. Our platform is built on our Evergreen architecture that evolves with your business �C always getting newer and better with zero planned downtime, guaranteed. Our customers are actively increasing their capacity and processing power while significantly reducing their carbon and energy footprint. It's easy to fall in love with ɫ�ش�ý, which is why we��ve received one of the highest Net Promoter Scores in the industry across the years. For more information, visit?www.purestorage.com.

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