Sovereign Cloud–Sovereign AI Conundrum: Policy Actions to Achieve Prosperity and Security

Executive Summary 1

What Is Sovereign Cloud? 4

The Forces Driving Sovereign Cloud 8

AI Is Leading to More Regulation of the Cloud 12

The Allure of Sovereign AI Is Accelerating the Rise of Sovereign Cloud 14

The Challenges of Sovereign Cloud: Higher Costs, Fewer Services, and Less Innovation 17

Policy Recommendations to Achieve Both Prosperity and Security 20

About the Author 26

Endnotes 27