In July 2024, the Australian government committed AUD $2 billion (US $1.3 billion) to a partnership with the Australian Signals Directorate and AWS to establish a secure “Top Secret Cloud” for government use. This sovereign cloud initiative will provide a secure environment for defense and intelligence agencies to store and analyze classified data, as well as leverage advanced technologies like artificial intelligence and machine learning.
The growth of sovereign cloud solutions in the APAC region, particularly in the public sector, is increasing rapidly. Research indicates that nearly half of agencies in APAC are planning to incorporate cloud sovereignty into their strategies within the next year. This trend is driven by factors such as geopolitical tensions, infrastructure control, cybersecurity concerns, data protection regulations, economic benefits, and the need for low-latency data processing.
Major hyperscale cloud providers like AWS, Google Cloud, and Microsoft Azure are investing in sovereign cloud services in the region. These offerings, tailored for the sovereign cloud market, are designed to meet the demand for secure, compliant, and localized data storage and processing solutions.
The future of cloud computing in APAC is likely to be dominated by sovereign cloud solutions, as regulations governing data sovereignty and compliance continue to evolve. Hyperscale cloud providers are expected to play a key role in developing and implementing these solutions in collaboration with local government agencies and technology partners.
