SOURCE RESEARCH
Data Sovereignty: Underlying Hardware
Presentation | 1Q 2026 | PT-3572
Get The ReportABI Research forecasts a significant surge in demand for sovereign cloud solutions as governments aim to protect their AI infrastructure. This is especially pronounced in highly regulated regions like Europe and Asia-Pacific. We project active IT data center IT capacity across sovereign/cloud data centers to increase from 3,127 Megawatts (MW) in 2025 to more than 16,000 MW by 2035. Available capacity is forecast to see a nearly 6X increase from 4,455 MW to more than 24,000 MW. Meanwhile, under the roof capacity is expected to reach 34,212 MW by 2035, up from 6,400 MW.
Forecast Timeline:
2025 to 2026: Rising cyber risks and geopolitical tensions drive governments and enterprises to expand sovereign data center capacity. Investment focuses on under the roof and available capacity, particularly for High Performance Computing and Artificial Intelligence workloads such as Large Language Model training. Demand for regionally assembled hardware increases, yet active capacity grows more slowly as organizations refine sovereignty requirements.
2027 to 2031: Sovereign deployments accelerate as regulations clarify and operational sovereignty matures, though hyperscalers maintain a capacity lead. By 2032, the gap between active and available capacity narrows as deployments stabilize.
After 2033: Growth slows due to energy constraints, site limitations, cost inflation, and demand saturation, prompting efficiency improvements and specialized infrastructure strategies.
