Microsoft and Core42 have launched a new whitepaper, “Balancing Innovation and Compliance in the AI Era: Core42 Sovereign Public Cloud Leveraging Microsoft Azure.” The document outlines how sovereign public cloud solutions will shape the UAE’s digital future.
Sovereign clouds are key for compliance, ensuring data is stored and managed locally. This is critical for sensitive information like PII and financial data. Advantages include enhanced security through strict access controls and encryption. They also provide operational control and support local innovation, all while remaining scalable and cost-effective.
A major takeaway? Sovereign public cloud solutions finally eliminate the trade-off between innovation and regulation. The paper highlights UAE case studies, such as AI fraud detection and real-time analytics in energy. 
According to the whitepaper, global spending on sovereign clouds is set to nearly double from $133 billion in 2024 to $259 billion by 2027. This underscores the urgency for governments to integrate digital sovereignty into tech strategies.
Sherif Tawfik, Chief Partnership Officer – AI & Cloud for Sovereignty at Microsoft, stated:
“The Core42 Sovereign Public Cloud, powered by Microsoft Azure, exemplifies our dedication to providing secure, compliant, and innovative cloud solutions that meet the unique needs of regulated industries in the UAE. By leveraging Microsoft Azure, we are providing a robust, secure, and compliant cloud infrastructure that empowers UAE organizations to harness the full potential of AI and cloud capabilities to innovate and accelerate their digital transformation journey while ensuring data sovereignty and regulatory compliance.”
Adrian Hobbs, Chief Technology Officer at Core42, emphasized the partnership’s importance for regulatory compliance:
“The Core42 Sovereign Public Cloud, powered by Microsoft Azure, which leverages our sovereign control platform, Insight, is designed to meet the unique needs of regulated industries. This initiative aims to enable businesses to achieve their digital ambitions securely and in compliance with regulatory requirements. Our collaboration with Microsoft ensures that we provide a cloud environment that fosters innovation while upholding the highest standards of data sovereignty and regulatory compliance. We are proud to contribute to the national journeys towards becoming global technology leaders.”
The partnership has already led to a landmark agreement with the Abu Dhabi Government for a sovereign cloud system. This initiative aims to enhance efficiency and innovation across government services, processing over 11 million digital interactions daily.
Stay tuned as the UAE pushes forward in its digital transformation journey, setting a global benchmark for AI leadership.
