Over Half of APAC Businesses Seek Greater Control Over Strategic Data as AI Risks Rise
APAC businesses are placing digital sovereignty higher on the technology agenda as AI, cybersecurity and compliance concerns grow, with 51% seeking greater control over sensitive and strategic data.
The research found that 51% of APAC organisations prioritising digital sovereignty want to retain control over sensitive and strategic data, broadly in line with 53% globally. Digital sovereignty is also receiving greater priority in the region than among global peers, with 38% of APAC organisations viewing it as a top or high priority, compared with 33% globally.
The report further found that 43% of APAC respondents rank digital sovereignty among the leading drivers of technology investment, compared with 30% globally. The findings highlight the growing importance of governance, risk and compliance considerations as organisations expand their AI and cloud initiatives.
Organisations are increasingly looking beyond traditional approaches to data governance as they seek to manage risk, regulatory obligations and operational resilience. Among APAC organisations that are not using AI or are only beginning implementation, 60% identify security, data privacy, compliance or digital sovereignty concerns as a significant barrier to AI adoption. Meanwhile, 54% of APAC technology leaders regard new security risks as a significant potential consequence of using AI.
Eric Wong, President, Asia Pacific at Expereo, said there is no single path to digital sovereignty across Asia Pacific, as businesses navigate different regulatory environments, cross-border data requirements and geopolitical risks while accelerating cloud and AI adoption.
“For multinational organisations, the challenge is maintaining visibility and control over how data and traffic move across markets without creating fragmented operations. As AI adoption accelerates, the network will become an increasingly important part of managing that complexity and enabling businesses to operate confidently across the region,” Wong said.
“At Expereo, we help multinational businesses design and manage global connectivity around their regional, regulatory and operational needs, providing greater visibility into how traffic moves across complex digital environments. As AI adoption accelerates, this visibility will become an increasingly important part of helping organisations maintain control, manage risk and operate confidently across many jurisdictions,” he added.
The report also highlights the commercial and regulatory pressures influencing the digital sovereignty push across Asia Pacific. Among APAC organisations prioritising digital sovereignty, 16% say demands from customers or business partners to localise data are influencing their approach, compared with 22% globally.
APAC technology leaders are also placing significant emphasis on security, AI and connectivity in their technology investment plans for the next 12 months. Security or cybersecurity will be a priority for 65% of APAC organisations, while 61% will prioritise AI or machine learning, including GenAI and agentic AI. Networking and connectivity, including bandwidth, SD-WAN and cloud connectivity, will be prioritised by 55%.
The fact sheet shows that 43% of APAC organisations rank digital sovereignty among their top business priorities driving technology investment. In terms of the factors shaping digital strategies, 51% want to retain control over sensitive or strategic data, 45% cite regulatory compliance across jurisdictions, 38% cite mitigating risks related to geopolitical instability, and 33% cite concerns over cross-border data transfers and jurisdiction.
AI adoption is further increasing the focus on visibility and control. While 61% of APAC organisations are prioritising AI and machine learning investment over the next 12 months, 40% of organisations already using AI say their implementations have exceeded or significantly exceeded expectations. At the same time, 54% see AI creating new security risks as a significant future concern.
Among APAC organisations not using AI or only beginning implementation, 60% cite security, data privacy, compliance or digital sovereignty concerns as a barrier. The figures point to security, privacy, compliance and sovereignty considerations as key factors in the region's approach to AI adoption.
Network infrastructure is also emerging as a key component of AI and digital sovereignty strategies. Only 9% of APAC organisations say their network or connectivity infrastructure is fully ready to support new technology initiatives. Another 54% say they are mostly ready but still have gaps or weak areas, while 30% say their current infrastructure can support current use but will soon need to be upgraded or replaced.
To operate in an AI-driven environment, 57% of APAC organisations need more flexible or scalable networks, 46% need to improve resilience and reliability, and 37% need networks that optimise cloud connectivity.
The research also identifies differences in the factors influencing digital sovereignty across individual APAC markets. In Australia, retaining control over sensitive or strategic data is cited by 56%. In Malaysia, the corresponding figure is 55%. In Thailand, cross-border data transfer and jurisdiction concerns stand at 54%.
In Indonesia, 46% cite alignment with national digital sovereignty policies, while in Vietnam, 47% identify geopolitical risk mitigation. In Singapore, 24% cite customer or partner pressure for data localisation.
The full IDC InfoBrief, commissioned by Expereo, “Enterprise Horizons 2026: Global Technology Leaders’ Priorities & Insights” (doc #XX, April 2026), is available through Expereo's report resource.

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