Pure Storage, in partnership with the University of Technology Sydney (UTS), has released new research highlighting how data sovereignty has become a pressing business concern. Once viewed mainly as a compliance matter, it is now seen as a critical risk that can impact competitiveness, innovation, and customer trust.
Geopolitical shifts driving new risks
The findings, based on a qualitative survey of industry leaders across nine countries, show that every respondent acknowledged data sovereignty as a significant risk. All confirmed that sovereignty issues, including potential service disruption, had forced them to reconsider where their data is stored. In addition, 92% said geopolitical shifts were increasing sovereignty risks, while the same proportion warned that inadequate planning could result in reputational damage. A further 85% said the biggest consequence of inaction would be the loss of customer trust.
The research identified a convergence of risks including service disruption, foreign influence, and evolving regulations, creating what was described as a “perfect storm” for businesses and nations. Organisations now face possible revenue loss, regulatory penalties, and long-term damage to stakeholder confidence if these risks are not addressed.
Calls for hybrid approaches
Pure Storage emphasised that the answer is not to completely avoid public cloud services or to ignore sovereignty risks. Instead, it recommended a hybrid approach that balances control with agility. This involves assessing which data and services are most critical and keeping those workloads in sovereign environments, while using public cloud for less sensitive functions. According to the company, this approach allows organisations to meet compliance requirements without sacrificing innovation.
Alex McMullan, Chief Technology Officer, International, Pure Storage, said, “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.”
This view was echoed by industry players such as The Access Group, which manages sensitive end-user data worldwide. Rolf Krolke, Regional Technology Director, APAC, The Access Group, said, “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 centres around the world.”
Strategic priority for 2025 and beyond
The report also carried perspectives from researchers and analysts who stressed the urgency of addressing the issue. Gordon Noble, Research Director at UTS’s Institute of Sustainable Futures, said, “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.”
Archana Venkatraman, Senior Research Director, Cloud Data Management, IDC Europe, added, “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.”
The research was conducted between July and August 2025 and included qualitative interviews with experts and practitioners from nine countries: Australia, France, Germany, India, Japan, New Zealand, Singapore, South Korea, and the United Kingdom. These regions represent diverse regulatory and geopolitical environments, reflecting how sovereignty concerns are now shaping business strategies worldwide.
