Sovereign cloud spending nears $80B as nations reclaim digital control

Governments and regulated industries are accelerating sovereign cloud investments, pushing global IaaS spending toward $80 billion in 2026, a 35.6% jump, Gartner reports. Rising geopolitical tensions are driving “geopatriation,” shifting workloads from global hyperscalers to local providers. Europe will overtake North America by 2027, signaling a structural realignment in cloud infrastructure as nations prioritize data sovereignty and digital independence.