European companies are increasingly turning to sovereign clouds to navigate stringent regulations, geopolitical uncertainties, and escalating requirements for data clarity, according to ISG. The adoption of sovereign clouds underscores a prominent shift in the business landscape, with companies prioritizing compliance and risk mitigation. This trend is driven by a surge in demand for enhanced data security and privacy measures, prompting organizations to leverage sovereign clouds for safeguarding sensitive information. The move towards sovereign clouds reflects a strategic response to address evolving regulatory frameworks and geopolitical dynamics. This development highlights the importance of prioritizing data protection and transparency in today's business environment.