Sovereign cloud · Part 3

Your options, from public cloud to your own racks.

Sovereignty isn't a yes or no. It's a spectrum, and each option gives you more control in some areas and less in others. Here's what each gives you, and what it doesn't.

The spectrum

Five broad options

Think of the options as a line. At one end is a standard public cloud region in the UK, run by a global provider. At the other is hardware you own, in a building you control. More control usually means more effort and cost, and often fewer ready-made services.

The providers named below are examples, in no particular order. None is a recommendation, and every one of them suits some workloads better than others.

  • A public cloud region in the UK.
  • The hyperscalers' own sovereign offerings.
  • European and UK providers.
  • Private cloud and on-premises.
  • Hybrid: a mix of the above, chosen workload by workload.

Option 1

A public cloud region in the UK

AWS (London), Microsoft Azure (UK South and UK West) and Google Cloud (London) all run UK regions. So do other providers, such as Oracle, OVHcloud and IONOS.

What it gives you

  • Data stored in UK data centres.
  • The provider's full range of managed services, including AI services, at large scale.
  • Several separate data centres in the region, so one site failing needn't stop you.
  • Familiar tools, plenty of skilled people to hire, and a wide range of security certifications.
  • Options to manage your own encryption keys.

What it doesn't

  • It doesn't change the provider's home jurisdiction. For a US-headquartered provider, US law still applies to it.
  • Some global features, such as parts of identity, billing, support and management, may process data outside the UK.
  • Support and operations staff may be based in other countries.
  • New services and AI models often reach the UK later, and some are only offered with EU, US or global processing.
  • A UK region is still one region. Surviving a full regional failure needs a second region or another plan.

Option 2

The hyperscalers' sovereign offerings

AWS European Sovereign Cloud: a separate cloud, opened in January 2026, with its first region in Brandenburg, Germany. It's run by EU-resident staff through separate German companies, with its own identity and billing systems and an advisory board of EU citizens.

Microsoft Sovereign Cloud: the Sovereign Public Cloud adds controls to Microsoft's European regions, such as Data Guardian (remote access limited to European-resident Microsoft staff) and External Key Management (keys held in your own hardware). The Sovereign Private Cloud brings Azure Local and Microsoft 365 Local into your own data centre. Separate national partner clouds, Bleu in France and Delos Cloud in Germany, are owned and run by local companies.

Google Cloud: three tiers. Data Boundary adds residency and access controls to the public cloud. Dedicated is run by an independent local operator, such as S3NS, a Thales-led joint venture, in France. Air-Gapped runs with no connection to Google or the internet. Google Cloud also has a contract to provide a sovereign cloud for the UK Ministry of Defence.

What it gives you

  • A familiar platform, so existing skills, tools and designs largely carry over.
  • Tighter limits on who can operate and access the service, with logs to show it.
  • In some cases, a separate local legal entity or a local partner running the service.
  • Customer-held encryption keys, often built in.
  • A route to stronger controls without a full change of platform.

What it doesn't

  • Most are built around the EU. The AWS European Sovereign Cloud is in Germany, and the Microsoft and Google partner clouds are in France and Germany. That's EU residency, not UK.
  • The parent company is still US-headquartered. How much that matters, given the separate entities and controls, is debated.
  • Fewer services than the standard public regions, and new services arrive later.
  • Usually a higher price than the standard regions.
  • They're newer, with a shorter track record. Check exactly which controls apply to UK regions.

Option 3

European and UK providers

IONOS (Germany) runs public cloud in Germany and the UK, including a data centre in Worcester. Its AI Model Hub serves open-weight models, with processing in German data centres. That's EU residency, not UK.

OVHcloud (France) has a UK region in Erith, east London, alongside many sites in France. Some of its services in France hold SecNumCloud, the French government's security qualification for cloud.

Scaleway (France, part of the iliad group) runs regions in Paris, Amsterdam and Warsaw, with GPU capacity for AI. STACKIT (Germany, part of the Schwarz Group, which owns Lidl and Kaufland) runs data centres in Germany and Austria.

In April 2026 the European Commission awarded its own sovereign cloud contracts to four groups: one led by Post Telecom with OVHcloud and Clever Cloud, STACKIT, Scaleway, and one led by Proximus using S3NS, Clarence and Mistral.

UK-based options include sovereign and private cloud services from UK telecoms and hosting firms. BT, for example, launched a sovereign cloud and AI portfolio, hosted and operated in the UK, in April 2026.

What it gives you

  • A provider headquartered in the UK or the EU, under that country's law.
  • Many are built on open-source software such as OpenStack and Kubernetes, which helps portability.
  • Often simpler pricing, which can make costs easier to predict.
  • A good fit for UK firms that also operate in the EU and want EU residency there.
  • More choice of supplier, which spreads concentration risk.

What it doesn't

  • EU providers are subject to EU law and their own national law. Their EU regions give EU residency, not UK.
  • Fewer managed services and less scale than the hyperscalers. Your team may build and run more.
  • UK footprints are often smaller than in the provider's home country, and not every service runs in every location.
  • Fewer engineers in the UK have worked with these platforms.
  • A smaller provider has less capacity to absorb a major failure, so check its financial strength and your exit plan.

Option 4

Private cloud and on-premises

Private cloud means cloud-style infrastructure, with self-service, automation, virtual machines and containers, dedicated to you. It runs in your own data centre or a hosting partner's. On-premises simply means on your own sites.

Options include open-source platforms such as OpenStack and Kubernetes, VMware-based stacks, and the hyperscalers' own hardware for your site. Azure Local (formerly Azure Stack HCI) can run disconnected from Azure. AWS Outposts racks need a constant connection to an AWS region and aren't designed for disconnected use. Google Distributed Cloud air-gapped runs with no outside connection at all.

What it gives you

  • The most control over location, access and encryption keys.
  • Suitable for air-gapped and highly classified work.
  • Predictable costs for steady workloads at scale.
  • Open-weight AI models on your own GPUs, with no data leaving your sites.
  • No dependency on a provider's commercial decisions for day-to-day running, if you use open-source software.

What it doesn't

  • You buy, run, patch and replace the hardware, and plan capacity ahead of demand.
  • Resilience is your job, which usually means a second site.
  • Far fewer managed services. Your team builds and runs much more.
  • GPUs for AI are expensive and need specialist skills to run well.
  • Hyperscaler hardware on your site still relies on that vendor for software and updates.

Option 5

Hybrid

Many organisations that look closely at sovereignty end up hybrid: different workloads in different places, with common tools across them. For example, a public website and analytics on a UK public region, customer records on a sovereign offering or private cloud, and AI processing chosen use case by use case.

What it gives you

  • The right level of control for each workload.
  • Extra spending only where the risk justifies it.
  • Access to the newest services where the risk is low.
  • Less dependence on any one provider.

What it doesn't

  • Simplicity. Networking, identity, monitoring and security have to work across every platform.
  • It needs strong architecture and governance, or it drifts.
  • Moving data between platforms needs care, and can cost money.
  • More platforms means more skills to keep up to date.

AI specifically

Which models you can run where

  • Open-weight models, such as gpt-oss, Gemma, Mistral, Llama and Qwen, can run anywhere with suitable GPUs: your own servers, a private cloud, a European or UK provider, or a hyperscaler. Licences differ between models, and sometimes between sizes of the same model, so check the terms before commercial use.
  • Sovereign providers' AI services mostly offer open-weight models. IONOS AI Model Hub runs in Germany. The AWS European Sovereign Cloud offers Gemma 4 through Amazon Bedrock, with processing kept in its German region.
  • Frontier models are offered as services by their makers and through particular clouds. OpenAI's GPT models are available from OpenAI and through Microsoft Azure. Anthropic's Claude is available from Anthropic and through Amazon Bedrock, Google Cloud's Vertex AI and Microsoft Foundry. Google's Gemini is available through Google Cloud.
  • Not every model is offered in every region. Some are only offered with global, US or EU processing, and some models listed in a cloud's catalogue run on the model maker's own infrastructure. Check the hosting and processing location for the exact model and deployment type.
  • A few frontier models can run privately. Google offers Gemini on Google Distributed Cloud air-gapped, in the customer's own data centre.
  • Model choice and platform choice are linked. If a use case truly needs a particular frontier model, that narrows where it can run. If an open-weight model is good enough, you have more choice of where it runs.
FAQ

Questions people ask

Something not covered here? Ask me directly →

Is the AWS European Sovereign Cloud an option for UK data?

It keeps data in the EU, currently in Germany, and is run by EU-resident staff. That's EU residency, not UK. It may suit UK firms that also operate in the EU, or that are content with EU residency for a given workload. For UK-only residency, look at UK regions or UK-hosted options.

Can I run Microsoft services in my own data centre?

Partly. Azure Local runs a subset of Azure services on hardware at your site, and Microsoft 365 Local runs Exchange Server and SharePoint Server on it. You get fewer services than in the public cloud, and you run the hardware.

Do European providers have UK data centres?

Some do. OVHcloud has a UK region in Erith, and IONOS has UK data centres including Worcester. Others, such as Scaleway and STACKIT, host in the EU. The services offered in a UK location can be narrower than in the provider's home country, so check the specific service you need.

Is on-premises cheaper than cloud?

Sometimes, for steady workloads at scale over several years. Often not, once you count staff, power, spare capacity, a second site and replacing hardware. It's worth modelling your actual workloads rather than assuming either way.

Sources, checked 9 November 2026

Whichever way you go, it has to work.

There's no single right answer. It depends on your data, your regulators, your risk appetite and your budget. I'll help you weigh it up, then lead or support the delivery of whichever you choose.

Sam Naseem
Sam NaseemBirmingham, UK · UK & Europe
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