Gartner Sees Sovereign Cloud IaaS Spending Hitting $80 Billion in 2026

Sovereign cloud services give governments and heavily regulated businesses greater control over where data is stored, how infrastructure is operated and which laws apply. Gartner said rising geopolitical tensions and stricter data-sovereignty rules are turning those capabilities into a major growth driver for cloud infrastructure, as organizations reassess their exposure to foreign jurisdictions and global technology providers.

Gartner forecasts worldwide spending on sovereign cloud infrastructure-as-a-service, or IaaS, will reach $80 billion in 2026, up 35.6% from 2025. The research firm also expects 20% of existing cloud workloads to move to local cloud providers, reflecting demand for data localization and clearer domestic legal jurisdiction over critical systems and information.