More than half of Asia Pacific businesses prioritising digital sovereignty want tighter control over their sensitive and strategic data, according to new research commissioned by Expereo and conducted by IDC.

The IDC InfoBrief found that 51 per cent of APAC organisations that rank digital sovereignty as a priority want to retain control over sensitive data, broadly in line with the 53 per cent global figure. But the region places noticeably more weight on the issue overall: 43 per cent of APAC respondents rank digital sovereignty among their leading drivers of technology investment, against 30 per cent globally.

AI adoption is pushing sovereignty up the agenda

The report links the shift to how quickly companies in the region are rolling out AI. Sixty per cent of APAC organisations not yet using AI, or only beginning to, cite security, data privacy, compliance or sovereignty concerns as a significant barrier to adoption. Among technology leaders more broadly, 54 per cent see new security risks as a likely consequence of using AI.

“There is no single path to digital sovereignty across Asia Pacific,” said Eric Wong, Expereo’s president for Asia Pacific. He noted that businesses face different regulatory regimes, cross-border data rules and geopolitical risks across the region, even as they accelerate cloud and AI adoption.

Wong added that for multinational organisations, the challenge is keeping visibility and control over how data and traffic move across markets without splintering operations into disconnected local set-ups.

Networks are the weak point

The research also found that network infrastructure hasn’t caught up with demand. Only 9 per cent of APAC organisations say their network or connectivity infrastructure is fully ready to support new technology initiatives, while 54 per cent say it’s mostly ready but has gaps. Fifty-seven per cent say they need more flexible, scalable networks to operate confidently in an AI-driven environment.

The findings also point to differences within the region. In Australia and Malaysia, retaining control over sensitive data is the top sovereignty driver, cited by 56 per cent and 55 per cent of respondents respectively. In Thailand, cross-border data transfer concerns lead at 54 per cent, while in Singapore, the standout driver is customer or partner pressure to localise data, at 24 per cent.