Data Sovereignty Emerges as Critical Business Risk

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Pure Storage has 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.

Pure Storage 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 – representing diverse regulatory and geopolitical landscapes where data sovereignty has become a defining factor for business success.

To read the report visit here

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