Nadella redefines ‘sovereignty’ for the AI era — analysts call it smart, self‑serving

Further, the analyst sees Nadella’s framing benefiting all hyperscalers.

“If sovereignty is defined less by where workloads run and more by who controls models, data flows, and governance, then global platforms with deep AI, data, and security stacks become the default foundation. Hyperscalers are well-positioned here because they can argue that customers retain control through encryption, customer-managed keys, model deployment choices, and enterprise governance without fragmenting infrastructure by region,” Walter said.

Huff and puff over past regulatory hurdles

Nadella’s comments are more likely a response to long-running tension between European regulatory priorities and hyperscaler operating models, one that has repeatedly put Microsoft under pressure, said Shelly DeMotte Kramer, principal analyst at Kramer & Company.

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AndyC

Andy Curtis is an award-winning security consultant, researcher and public speaker. He has been working in the computer security industry since the early 1990s, having been employed by state and federal government, leading healthcare and banking providers across three continents. He has given talks about computer security for some of the world’s largest companies, worked with law enforcement agencies on investigations into hacking groups, and is a regular voice on TV and radio explaining IT security threats.

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