Data sovereignty under pressure: Companies opt for European solutions and multi-cloud strategies

The background to this includes geopolitical uncertainties as well as regulatory requirements such as GDPR and the EU Data Act. 46 percent of respondents recognise risks in inconsistent U.S. legislation, while 40 percent view dependency on public cloud providers critically. As a solution, companies are increasingly relying on hybrid and multi-cloud strategies: 51 percent already combine public and private cloud environments to ensure greater control over sensitive data.

“Europe needs sovereign cloud solutions that are not only data protection compliant, but also flexible. Multi-cloud or hybrid approaches enable companies to regain sovereignty piece by piece, to use their data strategically without becoming dependent on individual providers,” explains Mathias Nöbauer, CEO of Exoscale.

Dr. Carsten Bange, founder and CEO of BARC, echoes this sentiment. “Especially in sensitive areas, it is crucial as to where the data is located, who can access it, and which laws it is subject to. That's why we see a clear movement towards European and sovereign IT solutions – both in the cloud and for on-premises systems.”

36 percent of the surveyed companies plan to increasingly rely on regional or local providers in the future. This trend is particularly evident in the DACH region: there, 41 percent plan to switch to European alternatives – significantly more than in the international comparison, where it is only just over a quarter. A central goal: to reduce dependencies on non-European technology providers.

Data sovereignty of strategic importance

In the DACH region, 41 percent of companies are planning to switch to European cloud and IT solutions to minimise risks and strengthen their digital independence. The study recommends that companies firmly integrate data sovereignty into their strategy – through a targeted combination of cloud and on-premises technologies and a critical analysis of sensitive data assets.

Recommendation: Act strategically and sovereignly

“Companies should no longer view data management as a purely IT issue,” comments Dr. Bange. “It's about digital self-determination – and thus about nothing less than the future viability of the business model.” The authors of the study therefore advise companies to anchor data sovereignty as an integral part of their corporate strategy. An inventory of critical data assets, their classification according to strategic relevance, and a flexible IT infrastructure form the basis for this. Cloud and on-premises solutions should be combined in a targeted manner depending on security and compliance requirements. “We see a clear trend: those who want to use data strategically need sovereign, hybrid systems,” explains Jörg Tewes. “Regional providers like Exasol enable this control – with European values, data protection compliance, and technological excellence.”

About the Study

This study is based on a quantitative online survey conducted in April 2025. The goal of the survey was to gain a detailed understanding of the current relevance and strategic importance of data sovereignty in companies. A total of 295 people participated in the survey. Participants came from various industries and company sizes and were globally distributed, with a special focus on Europe. Further information can be found at: Data Decisions. Built on BARC.

About BARC 

BARC is the leading European analyst firm for technology and the successful use of data, analytics, and artificial intelligence. The BARC Digital Workplace business unit complements this focus with expertise in content, process, and customer management.

Images:

The images may be used freely provided the source is cited: BARC/Exasol AG.

About A1 Digital & Exoscale
A1 Digital is a European partner for digital infrastructure and solutions, specializing in cloud, connectivity, IoT, networking, and cybersecurity, with the goal of jointly leading companies into a sovereign digital future. Its offerings include Exoscale – a European cloud platform, managed connectivity in over 180 countries, vertical IoT industry solutions with experience from over 1 million devices shipped, and scalable network solutions, complemented by 24/7 managed cybersecurity services at telco level.

About Exasol AG

Exasol is the world's most powerful analytics engine, purpose-built for the most demanding data workloads, with exceptional scalability and unmatched price-performance. Exasol enables data-driven companies to achieve lightning-fast analytics, real-time insights, and significant cost savings – on-premises, in the cloud, or anywhere data sovereignty must be guaranteed. Further information is available at www.exasol.com

About BARC
BARC is Europe's leading analyst firm for technology and the successful use of data, analytics, and artificial intelligence. Our BARC Digital Workplace division complements this focus with expertise in content, process, and customer management.