More than half of UK organisations now recognise data sovereignty as a crucial element of their data strategy, with customer trust emerging as a key driver alongside regulatory compliance. Research from OVHcloud, based on a survey of 500 IT decision makers in large organisations, highlights a shift in attitudes towards data sovereignty, positioning it as a competitive differentiator rather than just a legal obligation.
Over three-quarters of respondents indicated that data sovereignty is more important now than three years ago, with only four percent considering it less significant. However, perspectives on what data sovereignty entails vary widely. While 40 percent define it as a compliance issue, 36 percent associate it with data access, handling, and storage, and 28 percent link it to data portability. These differences in interpretation underscore the evolving nature of how businesses understand and implement data sovereignty principles.
Matt Tebay, Multi-Cloud Evangelist at OVHcloud, notes that businesses are increasingly recognising the broader benefits of robust data sovereignty policies. “Forty-one percent of UK organisations still see data sovereignty as a compliance requirement,” Tebay said. “However, 42 percent now acknowledge that it is important to customers and therefore a valuable asset for their business. This represents a fundamental change in how organisations are approaching data sovereignty and a growing awareness of its role in building customer trust.”
The findings suggest that data sovereignty is becoming a business imperative rather than a box-ticking exercise. Organisations that can demonstrate control over their data—knowing where it is stored, who has access to it, and which regulations it falls under, are finding themselves in a stronger position to reassure customers and stakeholders. Transparency, security, and governance are emerging as the key components of a mature data sovereignty strategy.
This shift is also reflected in investment priorities. The survey found that nearly two-thirds of organisations (65 percent) are willing to pay between 11 and 30 percent more for sovereign technology solutions that meet their regulatory and data control requirements. Only a small fraction, 6.5 per cent, were unwilling to invest in enhanced sovereignty protections.
Despite this progress, challenges remain. A quarter of IT leaders described data sovereignty as “complex and full of drama,” while 27 percent likened navigating it to the workplace antics of hit TV series The Office, suggesting that, for many, managing sovereignty remains a frustrating experience. However, Tebay believes the industry is moving in the right direction. “Data sovereignty is gaining maturity, but it’s not an easy matter,” he said. “The intersection of customer trust, technology, regulation, and commercial considerations can make for a challenging journey, but it is a necessary one. And like all journeys, the first step is the most important.”
The research reflects an evolving landscape where data sovereignty is no longer viewed solely as a compliance hurdle but as an integral component of business strategy. As customers demand greater transparency over how their data is handled, organisations that take proactive steps to embed sovereignty into their data management approach will likely gain a competitive edge in an increasingly digital economy.
