Sovereign Cloud and the UK Regulation Gap

This blog was written by Chris Folkerd, Director of Platform , ANS

What is a Sovereign Cloud, and why does it matter?

A sovereign cloud is a cloud environment that’s entirely governed by the laws of the country where it operates. That means the infrastructure, data, and operations are all located within national borders—and subject only to that country’s legal and regulatory frameworks. In the case of a UK sovereign cloud, your data is stored and managed entirely within the UK, under UK law. No foreign government can legally access it, even if the cloud provider is global.

This is a critical distinction when comparing sovereign cloud vs private cloud - while private cloud offers dedicated infrastructure, it doesn’t guarantee legal sovereignty. And the demand for sovereignty is growing. According to Accenture’s Sovereign Cloud Report, 65% of global executives say sovereign cloud is essential to their digital transformation strategy. It’s not just about compliance - it’s about control, resilience, and trust.

The UK’s regulatory grey zone

While the EU sovereign cloud movement is gaining momentum - backed by initiatives like the EU AI Act - the UK is still defining its approach. While the UK government has very clear regulations on where sovereign data can and cannot be placed, the situation is less clear for AI. As it stands right now, the UK is taking a pro-innovation approach to AI regulations.

This has led to 5 guiding principles:

Safety, security and robustness: AI systems should be built to operate safely and reliably, with strong protections against misuse or failure.
Appropriate transparency and explainability: Where it makes sense, AI should be clear about how it works and why it makes certain decisions - so people can understand and trust it.
Fairness: AI should be designed and used in ways that actively reduce bias and promote fair treatment for everyone.
Accountability and governance: There should be clear responsibilities in place for how AI is developed, deployed, and managed - so it's always clear who’s answerable.
Contestability and redress: People affected by AI decisions should have ways to challenge outcomes and seek resolution when things go wrong.

While these principles are helpful, they lead to grey areas that are open to interpretation. This leaves many organisations in a state of uncertainty.

So, what do you do?

At ANS, we’re not waiting for legislation to catch up - we’re helping customers build secure, future-ready environments using zero trust architectures and classification-based workload design. This means they can operate responsibly, even in the UK’s regulatory grey zone.

The US CLOUD Act: a risk hiding in plain sight. Here’s something many organisations don’t realise: if you’re using a US-based cloud provider, your data might be stored in the UK-but it could still be subject to US law.

Thanks to the CLOUD Act, the US government can legally demand access to data from any US company, regardless of where that data is physically located. That’s a serious concern for organisations handling sensitive or classified information. With UK sovereign cloud services, your data stays in the UK, under UK law. No foreign government can legally access it.

Cloud as a battleground: the geopolitical reality. From the Russia-Ukraine conflict to rising tensions with China and the uncertainty of US politics, cloud infrastructure is becoming a strategic asset - and, in some cases, a weapon. We’re seeing a rise in state-sponsored cybercrime, espionage, and proxy attacks targeting critical systems. Sovereign clouds offer a layer of resilience and control that’s becoming essential - not just for compliance, but for national security.

Looking ahead: the push for Cloud independence. There’s growing momentum behind the idea of cloud supply chain independence - a future where the UK owns and operates its entire digital infrastructure. As one of the UK’s most trusted sovereign cloud providers, we’re helping organisations build secure, scalable, and sovereign environments that align with national priorities and evolving threats.

Final thoughts: building trust in uncertain times.

While the UK has clearly established regulations on sovereign cloud, the geopolitical situation is currently unstable, and AI technology continues to develop rapidly.

As a result, the responsibility to protect data falls on providers and organisations.

At ANS, we’re committed to leading by example-offering sovereign cloud services that are secure by design, governed by UK law, and built for the future.