Data Sovereignty Emerges as Top Barrier to AI in Public Cloud
Event summary
- 62% of respondents cite data sovereignty and privacy risks as the biggest factor slowing AI projects in the public cloud.
- 16% of organizations lack access to facilities with guaranteed data sovereignty.
- 80% expect to use confidential computing to achieve data sovereignty in cloud or edge locations within the next 12 months.
- Arqit and Intel to showcase solutions for AI-assisted network safety at MWC Barcelona 2026.
The big picture
As AI becomes central to network security, data sovereignty is emerging as a critical constraint. The tension between operational urgency and regulatory compliance is slowing deployments, creating opportunities for providers like Arqit that offer solutions for securing data in motion across distributed environments. The findings highlight a growing gap between AI ambitions and practical execution, particularly in sectors handling sensitive data.
What we're watching
- Adoption Pace
- How quickly organizations will deploy confidential computing to address data sovereignty concerns.
- Regulatory Impact
- Whether evolving data sovereignty regulations will further complicate AI deployments in the public cloud.
- Competitive Dynamics
- The extent to which Arqit and Intel can differentiate their offerings in the growing market for AI-assisted network security.
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