Regional firms demand strict data sovereignty control
Market research from IDC indicated over half of enterprises across the Asia Pacific region are prioritizing data sovereignty controls due to operational security concerns
Businesses worldwide, including those in the Asia Pacific region, are increasingly seeking greater control over their sensitive and strategic data as concerns surrounding AI, security, and compliance escalate, according to a recent IDC InfoBrief. A survey commissioned by Expereo revealed that 51% of APAC organizations prioritize digital sovereignty, aligning closely with the 53% global average.
The region stands out, with 38% viewing digital sovereignty as a top or high priority, compared to 33% globally. Furthermore, 43% of respondents rank digital sovereignty among their leading drivers of technology investment, against 30% globally.
This surge in focus on digital sovereignty stems from the need to manage risks, comply with regulations, and ensure operational resilience as companies expand their AI and cloud initiatives. Governance, risk, and compliance considerations are becoming pivotal as organizations scale these technologies.
While many APAC organizations have embraced AI, a significant portion still faces barriers. Notably, 60% of those not using AI or only beginning their implementation cite security, data privacy, compliance, or digital sovereignty concerns as significant hurdles to AI adoption. Additionally, 54% of APAC technology leaders perceive AI as introducing new security risks, a predominant concern for future developments.
Eric Wong, president of Expereo in the Asia Pacific, emphasized the region's diverse regulatory and geopolitical landscapes, posing challenges for maintaining data visibility and control across markets without fragmenting operations. He highlighted the critical role of networks in addressing this complexity, enabling businesses to operate confidently across jurisdictions.
The report underscores the commercial and regulatory pressures fueling this shift. Among APAC organizations prioritizing digital sovereignty, 16% attribute this to customer or business partner demands for localized data, a trend observed in only 22% of global respondents. Despite these variations, the trend is consistent, with 43% of APAC tech leaders ranking digital sovereignty as a top business priority for technology investment.
Key factors shaping digital strategies include control over sensitive data (51%), regulatory compliance (45%), mitigation of geopolitical risks (38%), and concerns over cross-border data transfers (33%). As AI accelerates, the demand for greater network visibility and control intensifies, with 57% of APAC businesses needing more flexible or scalable networks, 46% requiring enhanced resilience, and 37% seeking optimized cloud connectivity.
Regional standout drivers of sovereignty concerns include Australia's focus on data control (56%), Malaysia (55%), Thailand (54%), Indonesia's alignment with national digital sovereignty policies (46%), Vietnam's geopolitical risk mitigation (47%), and Singapore's response to customer or partner pressure for data localization (24%).
Written by urgent.news from Vietnam Investment Review's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
