DATA SOVEREIGNTY EMERGES AS A CRITICAL BUSINESS RISK IN A NEW GEOPOLITICAL ERA

Pure Storage and UTS research reveals why sovereignty has shifted from a compliance checkbox to a strategic imperative for global enterprises.

- GORDON NOBLE

Introduction: From Compliance to Core Strategy

For years, data sovereignty was viewed primarily as a regulatory requirement a box to tick for compliance. Today, it has evolved into a strategic business imperative, shaping decisions at the highest levels of enterprise governance. A new study by Pure Storage, in collaboration with the University of Technology Sydney (UTS), underscores this transformation, revealing how geopolitical uncertainty, regulatory evolution, and operational risk are forcing organizations to rethink their data strategies.

The research surveyed industry leaders across nine countries and found unanimous agreement: data sovereignty is no longer optional—it is existential. Every respondent reported that sovereignty risks, including potential service disruption, have triggered a reconsideration of data location and governance models.

The Perfect Storm: Why Sovereignty Matters Now

Organizations face a convergence of pressures that make sovereignty a top priority:

• Geopolitical Tensions: Trade wars, sanctions, and regional conflicts are reshaping global data flows.

• Regulatory Complexity: Laws like GDPR, China's Cybersecurity Law, and India's DPDP Act impose strict localization requirements.

• Operational Continuity Risks: Service disruptions caused by foreign influence or cross-border restrictions can cripple mission-critical workloads.

According to the study:

• 100% of leaders acknowledged sovereignty risks as a driver for strategic change.

• 92% cited geopolitical shifts as amplifying these risks.

• 85% warned that failure to act could erode customer trust—the ultimate business currency.