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What is Sovereign Cloud? And when is it the right choice for your business?

The most crucial data of your company should be stored in a secure location. That goes without saying. That's why lots of companies are heavily guarding off their cloud environments. But is that really the best option for your confidential data? And how do you ensure sufficient flexibility? York Van den Heuvel, our Cloud Platforms Lead, tells you everything you need to know about data sovereignty in the cloud.

Thu, 9 October 2025

York Van den Heuvel | Arxus

York Van den Heuvel

Cloud Platforms Lead, Arxus

What is Sovereign Cloud?

Sovereign Cloud is an extensive set of solutions, frameworks and architecture that’s designed to give you more control over where your (confidential) data is stored in the cloud – also known as data residency – and who has access to it. Microsoft has been widely committed tot his for many years. And is actively building local Azure infrastructure in Europe. Because, in times of turbulence and geopolitical instability, you want your data to remain in the right hands.

But does that mean you should just shut everything off from the outside world? Absolutely not. Sovereign Cloud is a strategic framework that allows you to stay resilient, without sacrificing security or compliance.

For which organizations is it beneficial?

Sovereign solutions are particularly valuable for organizations that frequently handle sensitive data, like public authorities, hospitals, or financial institutions. These organizations are highly focused on their digital safety and regulatory compliance, since they're usually required to meet very strict European and local policies.

Why choose Sovereign Cloud?

Data sovereignty is a crucial aspect for many organizations. But what added value does Sovereign Cloud actually offer compared to other cloud infrastructures? We'll briefly sum up the most important advantages for you:

  • Azure with extra security options

    With Microsoft Azure as its foundation, you get the best of both worlds: flexibility and additional security. Thanks to Azure Confidential Computing and end-to-end encryption even your most sensitive workloads are thoroughly protected.

  • Compliance without compromise

    To meet the most rigorous compliance requirements, you don't have to completely isolate your environment. With the right access rules, you can continue to enjoy the benefits of the Microsoft ecosystem without compromising security.

  • Sovereignty tailored to your business

    Through specific policies, you’re completely free to decide how strictly your data should be encrypted and protected. And you choose where your data is stored, in the public and/or private cloud. You always retain complete control.

3 steps towards digital sovereignty

1. Don't panic, choose the right technology

Protecting your corporate data optimally simply requires enough care. Most modern technology has built-in compliance mechanisms to thoroughly secure your data and environment. Frameworks such as ISO 27001, GDPR, and CIS are already baked into the majority of cloud platforms, including Microsoft Azure. And with tools like Microsoft Purview, Azure Policy, and Defender for Cloud, you can smoothly implement solid data governance and compliance.

Additionally, the European Union has also established a broad legal framework to facilitate and guarantee data sovereignty. Regulations such as the EU Data Act and the Digital Operational Resilience Act (DORA) impose stricter requirements on data processing, transparency, and control. Luckily, cloud providers such as Microsoft are well-prepared for this. You can simply build on their foundation, focusing on your own risk analysis and business needs.

2. Don't build a fort, go for flexibiliteit

Sovereignty is not about building an airtight bunker where you can store all your data. It's about agility and control, not complete isolation. You build an infrastructure that can withstand change, so you can respond resiliently to unexpected situations.

But how exactly do you do that? Using proven frameworks from Microsoft and our own best practices, we build a flexible and reliable cloud environment where you're always in control.

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3. Don't just go all-in, make strategic choices

There is no on/off switch for sovereignty. It's a gradual process in which you make choices based on your risk, sensitivity, and context. Because some data is more sensitive than other: your financial data and personal information, for example, warrant better protection than certain marketing data. That's why we recommend determining the right level of control, encryption, and monitoring for each workload individually. This allows you to maximize security without throwing flexibility out the window.

With the right balance, you can avoid over-engineering and cost-waste. You want to invest where it counts, while maintaining speed and scalability. In short: sovereignty is not an all-or-nothing story. It's all about making strategic decisions.

Ready to build a sovereign cloud together?

Let's find the right balance between security, compliance, and flexibility that fits for your business. Feel free to contact our cloud experts for a first introduction.

Contact our experts about Sovereign Cloud | Arxus

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