With AI and data explosion, creating ‘sovereign cloud’ is the key

In a world increasingly shaped by algorithms and automation, data has become the raw material from which meaning is extracted.

It is the ink of the digital age, capturing everything from personal memories and medical records to national infrastructure and economic intent.

As AI gains momentum and digital transformation becomes the default, data is no longer a byproduct of our actions – it is the action. And with its rise comes a fundamental question: not whether we should entrust our data to the cloud, but how we do so – securely, responsibly, and sovereignly.

In this context, sovereignty is about far more than geography. It’s about assurance.

About who governs, who protects, and who ultimately holds the keys to the digital world we are building.

In this shift, sovereign cloud has emerged not only as a compliance requirement but also as a foundation for digital trust.

True digital sovereignty is built on three interdependent pillars: data sovereignty, operational sovereignty, and technological sovereignty.

 Too often, these elements are conflated or oversimplified. Data residency, for example, is commonly mistaken for sovereignty. However, knowing where data is stored is only the beginning; true sovereignty involves having control, visibility, and assurance throughout the entire data lifecycle.

At Core42, we enable sovereignty through two complementary cloud environments. Our Signature Private Cloud is purpose-built for highly sensitive workloads, such as classified or top-secret data, requiring full control and isolation.

Meanwhile, our Sovereign Private Cloud supports confidential and general-use cases, offering scalable infrastructure with sovereign controls embedded.

These environments are not mutually exclusive. In fact, during the recent AI Leadership Forum, I shared how many of our clients are operating across both. To enable this, we’ve established a deep partnership with Microsoft to ensure that even in public cloud deployments, sovereignty principles are upheld.

For critical private workloads, we’ve developed a proprietary technology stack and operational frameworks that guarantee full data, operational, and technological sovereignty. And for public cloud, we’ve engineered controls and policies that bring the same level of assurance, without sacrificing scalability or flexibility.

One example is Core42 Insight, a sovereign enablement platform launched last year leveraging our partnership with Microsoft, enables secure and compliant migration to the public cloud. With advanced sovereign and security controls embedded within Azure, it has already supported over 30 clients in transitioning critical workloads.

Our work with Abu Dhabi’s Department of Government Enablement (DGE) exemplifies how secure public cloud adoption can scale. Through this partnership, we are enabling over 47 government entities to safely adopt public cloud infrastructure - while maintaining strict governance and compliance.

This is part of a wider trend.

The UAE’s public cloud market is forecast to reach $3.1 billion, with infrastructure comprising a significant portion. Our role is to ensure this migration is not only secure, but also future-proof. To support this, we announced a multi-year collaboration with Abu Dhabi’s Department of Government Enablement and Microsoft to establish a sovereign cloud and AI infrastructure for Abu Dhabi capable of processing more than 11 million digital interactions daily between Abu Dhabi’s government entities, citizens and businesses.

The UAE is uniquely positioned to lead in digital sovereignty. Its abundant energy resources – gas, solar, and nuclear, combined with strong global connectivity and a forward-looking regulatory environment, create an ideal foundation for sovereign cloud infrastructure.

With over 400MW of data centre capacity built or underway, we’re now asking a bigger question: How can this model support others?

Through our Virtual Sovereign Services initiative, we’re exploring how to extend our approach to countries that lack local hyper-scale cloud regions. This model enables nations to retain full sovereignty over their data, while leveraging secure, compliant infrastructure hosted in the UAE.

In a world defined by cross-border data flows, rising digital threats, and growing demand for ethical AI, sovereignty has become a necessity. Core42 is proud to help nations build the infrastructure of trust, unlocking innovation while keeping control firmly in their hands.