Geopolitical uncertainty is prompting organisations to rethink where their data and artificial intelligence (AI) models reside, increasing interest in local cloud hosting and sovereign AI.

Fear of foreign shutdowns drives local cloud demand

Geopolitical uncertainty is prompting organisations to rethink where their data and artificial intelligence (AI) models reside, increasing interest in local cloud hosting and sovereign AI.

The US, under president Donald Trump, and Israel launched strikes against Iran in February over its nuclear programme. The conflict escalated into a regional war in March, disrupting oil and gas shipments and pushing Brent crude to $114 a barrel as of early this morning, up from about $72 before the war, while weighing on global economies.

The conflict has also highlighted the risks organisations face when critical services depend on foreign providers and infrastructure.

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