Why Data Portability Is the Cornerstone of Sovereign Cloud Strategy?
By Michael Cade, Global Field CTO, Veeam
The rise of sovereign clouds has become inevitable. Regulatory requirements and growing geopolitical pressures are forcing enterprises to rethink where their data resides. As a result, localized cloud environments are no longer optional; they are becoming essential. These environments allow organizations to keep data within specific jurisdictions to meet compliance obligations and mitigate risk.
However, sovereign clouds cannot succeed without data portability—the ability to move data seamlessly across systems and locations. Organizations should not wait for regulations to compel action; they must stay ahead of the curve.
The Reality of Moving Data
Enterprises must confront a difficult truth: moving data across hybrid environments is far from simple. It is not just about relocating primary data; organizations must also ensure it remains protected while accounting for associated datasets, such as backups and data used in AI-driven applications.
While some organizations may need to safeguard Large Language Model (LLM) training data, many are instead adopting Retrieval-Augmented Generation (RAG) or AI agents. These approaches enable organizations to extract intelligence from proprietary data without building models from scratch. Regardless of the strategy, data sovereignty is a valid response to today’s pressures—but data resilience must always come first, no matter where data is stored.
It is a familiar story: the cloud promises flexibility and choice, but realizing these benefits requires cohesive, end-to-end thinking.
Today’s Regulatory Landscape
Regulators worldwide are reshaping how organizations approach data, responding rapidly to increasing data globalization as governments seek greater control and visibility. The European Union has taken a particularly strict stance through the General Data Protection Regulation (GDPR), which enshrines data sovereignty. Under GDPR, the laws of the country where data is stored or processed apply to that data, regardless of where it was originally collected.
Further scrutiny is being placed on data custody and risk management through regulations such as NIS2 and DORA, both of which impose stringent requirements when data is handled by third parties.
As increasingly sensitive and classified data is entrusted to cloud providers, keeping that data subject to privacy and sovereignty laws has become a priority for both organizations and governments—especially as data routinely crosses national borders.
Sovereignty in an Unstable World
The growing movement of data across countries and continents has intensified concerns around global instability, particularly for governments. Many have already adopted sovereign cloud models to shield sensitive information from potential malicious access. Others have gone even further.
Because cloud services depend entirely on data center infrastructure, some governments are divesting from foreign-owned cloud and data infrastructure and reinvesting in domestic alternatives. This allows them to retain control over their most sensitive data and avoid reliance on foreign providers.
Yet cloud sovereignty is not a silver bullet. While multinational cloud providers may allow organizations to specify where data is stored and which legal frameworks apply, there is no absolute guarantee that these conditions will not change. Moreover, relocating primary data alone is insufficient. Backups, AI training datasets, and other related data must also be addressed to meet sovereignty requirements. Alternatively, organizations can adopt RAG or AI agents to enhance their data capabilities without managing vast volumes of training data.
Freedom of Movement
To achieve this balance, data portability must be embedded into data resilience strategies. There is a fine line between protecting data and restricting it to the point where it loses value. Without data portability, transitioning to a hybrid cloud model—one that combines sovereign clouds with localized storage—becomes impractical.
While Software-as-a-Service (SaaS) and Disaster Recovery-as-a-Service (DRaaS) providers can simplify parts of this journey, responsibility cannot be fully outsourced. Organizations must remain actively involved, carefully planning and managing data movement to ensure security throughout the process. Without this hands-on approach, meeting the growing web of data residency and sovereignty regulations will remain out of reach.
There are trade-offs. Large multinational organizations may need multiple sovereign cloud environments across regions, increasing complexity in monitoring, management, and compliance. Multiple regulatory frameworks must be navigated simultaneously, and while improved resilience is a benefit, the risk of data fragmentation also rises.
There is no easy solution. What is certain, however, is that data portability is fundamental. The ability to move data seamlessly across platforms and clouds will be essential as organizations grapple with sovereignty requirements. As new regulations emerge, data portability will give organizations a decisive advantage—enabling faster adaptation and compliance while less agile counterparts struggle.
Tying Down the Cloud
Data globalization shows no signs of slowing. Information flows have become a form of trade in their own right, generating significant economic value. Against a backdrop of ongoing global instability, data sovereignty will only climb higher on organizational and governmental agendas. Crucially, it is not a challenge that can simply be delegated to third-party providers.
Data sovereignty and operational clarity are deeply interconnected. Organizations must first understand exactly where their data is stored and how it is managed. With a clear view of the data landscape, weaknesses in resilience and portability become easier to identify and address.
By rebuilding data resilience from the ground up, organizations can embed security, compliance, and sovereignty into daily operations—supported by risk assessments, compliance audits, and multi-vendor strategies.
With this foundation in place, hybrid cloud environments can be used effectively. Highly sensitive data can remain on-premises under strict sovereignty controls, while less critical data is moved to the cloud. However, this flexibility is only available to organizations that prioritize data portability.
Rather than waiting for regulations to force change, organizations must act now to unlock the flexibility, longevity, and—most importantly—the security that the cloud can offer.
