IDC: One-Third of Asia/Pacific Govts Plan to Adopt Sovereign Cloud Services by 2026

SINGAPORE – According to a recently released IDC report, State of Sovereign and Industry Cloud Investment by Asia/Pacific Governments, government interest in the region for sovereign cloud solutions is rising due to geopolitical disruptions, increasing cyber threats, evolving data protection regulations, and shifts in digital trade policies. Governments also see sovereign cloud as an economic advantage, encouraging investments from hyperscalers in local data centers to enhance the digital economy and industry prospects.

This IDC report examines Asia Pacific governments' investments in sovereign and industry clouds using survey data. It covers adoption trends, investment plans, challenges, and the providers' landscape, providing insights into providers' strategies and actionable advice for government entities navigating sovereign clouds and digital sovereignty trends.

Highlights of the report include:

  • Government organizations in the Asia Pacific region are increasingly interested in adopting sovereign cloud services, with 17% already utilizing them and a third planning to do so within two years, according to IDC's FERS survey.
  • These agencies perceive benefits in terms of enhanced data security, compliance with data residency regulations, control over infrastructure, and the promotion of transparency.
  • However, they also face significant challenges such as high implementation costs, complexity, security concerns, and potential constraints on innovation.
  • In response, major cloud providers like AWS, Google Cloud, IBM Cloud, Microsoft Azure, and Oracle are expanding their offerings for the sovereign cloud market in the Asia Pacific region.

"Asia/Pacific government organizations are assessing sovereign clouds for data control, security, and regulatory benefits while addressing concerns about security, costs, and reliance on vendors. Successful adoption requires prioritizing investments, classifying data, and aligning trust with organizational goals. Vendors must educate thoroughly and offer practical solutions for effective sovereign cloud implementation," says Ravikant Sharma, Research Director, Government Insights, IDC Asia/Pacific.

For more information on this IDC document, please get in touch with Ravikant Sharma at For media inquiries, please contact Miguel Carreon at or Michael de la Cruz at

*Asia/Pacific including Japan

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