Over half of APAC businesses want greater control over strategic data in latest digital sovereignty push, new research shows

Businesses around the world, including Asia Pacific, are seeking greater control over their sensitive and strategic data as growing concerns around AI, security and compliance push digital sovereignty higher up the boardroom agenda, according to the latest IDC InfoBrief commissioned by Expereo.

The research found that 51% of APAC organisations prioritising digital sovereignty want to retain control over sensitive and strategic data, broadly in line with 53% globally. They are also placing greater emphasis on digital sovereignty than their global peers, with 38% viewing it as a top or high priority, compared with 33% globally. In addition, 43% of respondents from the region also rank it among the leading drivers of technology investment, compared with 30% globally. This highlights how governance, risk and compliance considerations are becoming increasingly important as organisations scale AI and cloud initiatives.

The findings suggest organisations are looking beyond traditional approaches to data governance as they seek to better manage risk, regulatory obligations and operational resilience. Among APAC organisations not using AI or only beginning implementation, 60% identify security, data privacy, compliance or digital sovereignty concerns as a significant barrier to AI adoption, while 54% of APAC technology leaders regard new security risks as a significant potential consequence of using AI.

Eric Wong, President, Asia Pacific at Expereo, says: “There is no single path to digital sovereignty across Asia Pacific. Businesses are navigating very different regulatory environments, cross-border data requirements and geopolitical risks, while accelerating their adoption of cloud and AI.

For multinational organisations, the challenge is maintaining visibility and control over how data and traffic move across markets without creating fragmented operations. As AI adoption accelerates, the network will become an increasingly important part of managing that complexity and enabling businesses to operate confidently across the region.

At Expereo, we help multinational businesses design and manage global connectivity around their regional, regulatory and operational needs, providing greater visibility into how traffic moves across complex digital environments. As AI adoption accelerates, this visibility will become an increasingly important part of helping organisations maintain control, manage risk and operate confidently across many jurisdictions.”

The report also highlights the growing commercial and regulatory pressures driving this shift and playing out differently across Asia Pacific. Among APAC organisations prioritising digital sovereignty, 16% say demands from customers or business partners to localise data are influencing their approach, compared with 22% globally.

Fact Sheet: APAC technology leaders prioritise sovereignty as AI, cyber risk and connectivity pressures converge

APAC technology investment priorities over the next 12 months

• 65% of APAC organisations will prioritise security/cybersecurity.

• 61% will prioritise AI or machine learning, including GenAI and agentic AI.

• 55% will prioritise networking/connectivity, including bandwidth, SD-WAN and cloud connectivity.

• 43% rank digital sovereignty among their top business priorities driving technology investment.

Control, compliance and cross-border risk

• 51% want to retain control over sensitive or strategic data.

• 45% cite regulatory compliance across jurisdictions.

• 38% cite mitigating risks related to geopolitical instability.

• 33% cite concerns over cross-border data transfers and jurisdiction.

AI is accelerating the need for greater visibility and control

• 61% of APAC organisations are prioritising AI/ML investment over the next 12 months.

• Among organisations already using AI, 40% say implementations have exceeded or significantly exceeded expectations.

• 54% see AI creating new security risks as a significant future concern.

• Among APAC organisations not using AI or only beginning implementation, 60% cite security, data privacy, compliance or digital sovereignty concerns as a barrier.

Networks as a foundation for AI and sovereignty

• Only 9% of APAC organisations say their network/connectivity infrastructure is fully ready to support new technology initiatives.

• 54% say they are mostly ready, but still have gaps or weak areas.

• 30% say current infrastructure can support current use but will soon need to be upgraded or replaced.

• To thrive in an AI-driven environment: 57% need more flexible or scalable networks, 46% need to improve resilience and reliability, and 37% need networks that optimise cloud connectivity.