The $600 Billion Sovereignty Shift: Why Regulated Industries Are Bringing AI In-House
We’re seeing a massive shift in how the biggest players think about AI infrastructure.
McKinsey is estimating that 30% to 40% of AI spending — representing a $600 billion market by 2030 — is going to be influenced by sovereignty requirements. That is a lot of gravitational pull away from the public cloud.
For a long time, the play was to move your data to where the compute lived. But for regulated industries, that’s becoming a non-starter. The new playbook is about bringing the compute to the data.
If you’re in finance or healthcare, keeping your data within your own legal and physical boundaries isn’t just a “nice to have” — it’s the baseline. Because the moment your data leaves your control, so does your competitive advantage.
The only way forward for these sectors is ownership. The question isn’t whether to bring compute in-house — it’s when, and how to do it efficiently.
