Report explores role of Sovereign Cloud in the UAE
UAE’s Core42 and Microsoft eye global $259 billion Sovereign Cloud opportunity
#UAE #SovereignCloud – G42 Croup’s sovereign cloud, AI infrastructure, and services company Core42 and US technology giant Microsoft have released a sovereign cloud whitepaper called Balancing Innovation and Compliance in the AI Era. The paper positions sovereign public clouds as foundational for regulated industries, while showcasing real-world use cases from the UAE and outlining how Core42’s sovereign platform, powered by Microsoft Azure, addresses both innovation and compliance imperatives. With global sovereign cloud spending forecast to almost double to $259 billion by 2027, the report underscores growing demand worldwide.
SO WHAT? – The new Core42 and Microsoft whitepaper explores the transformative role of sovereign public cloud solutions in shaping the digital transformation of government and regulated industries in the UAE. Core42 and Microsoft’s collaboration offers a compelling model for digital transformation aligned with national interests, reinforcing the UAE’s AI ambition. Meanwhile, the paper identifies a massive global opportunity.
Here are some highlights from the new whitepaper:
G42 Croup’s sovereign cloud specialist Core42 and Microsoft have published a sovereign cloud whitepaper called Balancing Innovation and Compliance in the AI Era. The paper argues that sovereign cloud models remove the trade-off between compliance and innovation, enabling secure adoption of AI.
According to IDC, lobal spending on sovereign cloud services is projected to increase from $133 billion in 2024 to $259 billion by 2027.
Real-world UAE use cases featured include fraud detection in finance, predictive diagnostics in healthcare, citizen data protection in government, and real-time analytics in energy.
Core42’s sovereign control platform Insight, integrated with Microsoft Azure, enables compliance with UAE data residency and security regulations.
The report outlines how sovereign public clouds help protect personally identifiable information (PII), financial data, and intellectual property.
Sovereign cloud solutions also reduce dependency on foreign infrastructure, enhancing national resilience and data governance.
The Core42-Microsoft collaboration reinforces the UAE’s leadership in building a sovereignty-first digital economy aligned with national priorities.
ZOOM OUT – Microsoft and Core42’s recent new multi-year agreement with the Abu Dhabi Government marks one of the most significant sovereign cloud contracts in the region to date. Announced in March, the deal confirms that Core42’s Sovereign Public Cloud, powered by Microsoft Azure, will underpin Abu Dhabi’s ambitious AED 13 billion ($3.54 billion) digital strategy for 2025–2027. With a target of digitising and automating 100% of government services and enabling over 11 million daily digital interactions, the partnership cements Core42 and Microsoft as central to the UAE’s AI-native government vision and positions the UAE as a global leader in sovereign digital infrastructure.
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