As global regulatory frameworks increasingly require data to remain within specific jurisdictions, sovereign cloud solutions have become essential infrastructure options for organizations worldwide. However, not all sovereign cloud approaches are created equal – particularly regarding alternatives to the dominant hyperscalers.
In a significant industry acknowledgment, Vultr has been included as a key vendor in the Omdia Market Radar: Sovereign Cloud 2025 – A practical guide for CIOs.
The comprehensive Omdia report explores how cloud service providers have responded to the demand for jurisdictional data control. It defines a six-level model of sovereignty, ranging from basic data residency to complete operational jurisdiction, helping CIOs understand the spectrum of sovereignty options available. The report covers how the market has evolved since 2023, with customers now having a wider selection of solution providers.
The growing importance of sovereign AI
Beyond essential data sovereignty, the Omdia report also highlights the emergence of "sovereign AI" as nations seek to build AI capabilities while maintaining control over sensitive data. This development represents both a challenge and an opportunity for cloud providers.
The European Commission proposes the Cloud and AI Development Act, aiming to at least triple the EU’s data center capacity in 5-7 years. Meanwhile, investments like Australia's AUD $2 billion "Top Secret Cloud" initiative in the APAC region demonstrate how governments increasingly prioritize sovereign cloud solutions that can safely host sensitive data while enabling AI innovation.
Vultr’s distinctive approach
The Omdia analysis reveals Vultr's unique approach to sovereign cloud, highlighting our agility and ability to deploy in markets hyperscalers often find economically impractical. This flexibility is particularly valuable as the cloud market becomes increasingly regionalized, with different jurisdictions implementing data protection regulations.
With 32 cloud data center regions distributed across six continents, Vultr connects approximately 90% of the global population within 2-40ms latency. Our extensive network provides both worldwide reach and the local presence needed for true data sovereignty, addressing a critical gap in the market.
A different model than hyperscalers
Our fundamentally different approach compared to hyperscalers sets Vultr apart in the sovereign cloud landscape. The Omdia analysis points to several key strengths that position Vultr as a viable alternative:
- Consistent platform experience: Vultr maintains the same operating software and service offerings across our public cloud and disconnected sovereign cloud implementations, ensuring consistent performance and capabilities regardless of location.
- Rapid deployment model: By leveraging co-location facilities, Vultr can quickly deploy sovereign cloud infrastructure in response to customer demand, particularly in regions underserved by larger providers.
- Actual data ownership: Vultr's approach ensures customers maintain complete ownership and control over their data – a crucial consideration as regulators worldwide implement increasingly stringent data protection requirements.
While hyperscalers struggle to adapt their massive infrastructures to varied regional requirements, Vultr's model is inherently more flexible. Our model directly addresses the European pushback against hyperscalers, where concerns about data sovereignty have intensified following developments like the invalidation of the EU-US Privacy Shield. According to Accenture, approximately 50% of European CXOs now list data sovereignty as a top concern when selecting cloud vendors.
As Omdia noted, "Vultr has one of the highest levels of support for data residency, sovereignty, and privacy, which is exemplified by its HIPPA support in the United States for sensitive healthcare data and GDPR support for EU clients."
For security-conscious organizations, Vultr's accreditation for multiple recognized regulatory standards – including SOC 1 Type 2, SOC 2 Type 2, ISO 27001, PCI-DSS, NIST 800-53, and HITRUST – demonstrates our commitment to compliance across various industries and regions. Our multiple separate data centers enable global redundancy and in-country redundancy for those with specific sovereignty requirements.
Leading the next wave of sovereign cloud innovation
As regulatory frameworks around data sovereignty evolve, Vultr's agile approach provides a compelling alternative to hyperscalers for organizations seeking compliance and performance. Our Sovereign Cloud empowers governments, research institutions, and enterprises to access essential cloud-native infrastructure while ensuring that critical data, technology, and operations remain within national borders.
For CIOs navigating the complex landscape of data sovereignty requirements, Vultr's recognition in the Omdia report signals a valuable option beyond the traditional hyperscaler model – one that combines global reach with local control and high performance with regulatory compliance. Read the full Omdia Market Radar for more insights.