IBM India and South Asia Managing Director Sandip Patel has highlighted the growing importance of digital sovereignty, saying businesses and governments need greater control over their data, technology infrastructure and critical digital systems.
The issue is becoming increasingly significant as organisations respond to changing regulations, geopolitical uncertainty and the rapid adoption of cloud computing and artificial intelligence (AI). For sectors such as banking, where sensitive information and operational continuity are essential, companies must consider not only where their data is stored but also who controls the systems used to manage it.
Speaking at IBM’s flagship IBM Think event, Patel discussed how these concerns are influencing technology decisions and encouraging organisations to explore infrastructure that offers stronger operational control while supporting digital innovation.
Why Digital Sovereignty Is Becoming a Priority
Digital sovereignty refers to an organisation’s ability to maintain meaningful control over its data, digital infrastructure and technology operations within the legal and regulatory framework that applies to it.
For businesses operating across national borders, this can involve questions about the location of data, access to encryption keys, responsibility for system administration and the jurisdiction governing critical services.
According to Patel, organisations are increasingly looking for technology arrangements that reflect their regulatory obligations and the importance of the services they provide. This is particularly relevant to financial institutions and other highly regulated industries, where organisations must protect confidential information and demonstrate compliance.
Geopolitical developments have added another consideration. Businesses are reassessing how dependent their operations are on technology infrastructure managed outside their preferred jurisdiction. As a result, digital sovereignty is becoming part of broader discussions about cybersecurity, business continuity and technology risk management.
How IBM Is Approaching Data Sovereignty
IBM is developing solutions intended to give organisations greater control over their technology environments without requiring them to abandon the benefits of cloud-based computing.
One initiative highlighted in the supplied report is IBM Sovereign Core, a software stack announced in March to address concerns surrounding data residency, operational control and regulatory compliance. It is designed to be deployed in data centres owned by customers or their partners.
The approach aims to provide cloud-like capabilities while allowing organisations to retain greater control over important operational functions, including control-plane operations and encryption-key management within their chosen jurisdiction.
For businesses, such arrangements could help address questions about who can administer critical systems and how technology operations align with local requirements. However, the actual level of control depends on how a solution is deployed, configured and governed, as well as the contractual and legal arrangements surrounding it.
Organisations considering these systems must therefore evaluate technical safeguards alongside compliance obligations and operational responsibilities.
AI Infrastructure and IBM Bharat Core
Artificial intelligence is another important part of IBM’s strategy. As organisations introduce AI into customer services, financial operations and internal decision-making, they face questions about where models run, how information is processed and who can access the underlying systems.
The report describes IBM Bharat Core as an AI technology stack built on Sovereign Core and designed around Indian requirements. It aims to provide reusable AI services, models and connectors that organisations can adapt across industries.
IBM is also developing India-focused tools to support the deployment of sovereign AI systems. These include the Svaiam reference architecture, which the report says is intended to support sovereign AI deployments in government environments.
The broader objective is to help organisations develop AI capabilities while retaining greater oversight of their technology infrastructure. For government agencies and regulated businesses, this can be particularly important when AI systems handle sensitive information or support critical services.
Nevertheless, keeping infrastructure within a particular jurisdiction does not automatically guarantee that an AI system is secure, transparent or compliant. Data governance, access controls, model evaluation and ongoing monitoring remain essential.
What Digital Sovereignty Could Mean for India’s Technology Sector
India’s expanding digital economy is increasing demand for computing capacity, data centres and infrastructure capable of supporting AI workloads. At the same time, enterprises are assessing how much control they need over the systems that underpin their operations.
Patel identified the development of domestic technology capabilities and the growing interest in enterprise-controlled infrastructure as important trends in the country’s technology landscape.
Locally deployable systems could offer organisations more flexibility in deciding where critical workloads run and how their infrastructure is managed. They may also help businesses align technology decisions with industry-specific regulations and internal risk policies.
The trend could contribute to wider discussions about data-centre investment, cloud architecture and the role of domestic technology providers. However, digital sovereignty does not necessarily mean that every component must be developed or operated exclusively within India. Organisations will need to balance control and compliance with reliability, cost, performance and access to international technology.
For companies planning digital transformation, strategic advisory services can be relevant when assessing business risks, investment priorities and long-term technology decisions. Any such assessment should be based on the organisation’s specific operational and regulatory requirements.
IBM and MeitY Startup Hub Aim to Support Deep-Tech Startups
Alongside its enterprise infrastructure initiatives, IBM is working with the Ministry of Electronics and Information Technology (MeitY) Startup Hub to support India’s deep-tech startup ecosystem.
According to the supplied report, the collaboration is intended to provide emerging companies with access to technology expertise, mentorship, enterprise engagement opportunities and skills development programmes.
Participating startups are expected to gain exposure to IBM technologies and innovation platforms, including IBM watsonx, its enterprise AI and data platform, and IBM Bob, an AI coding agent designed for enterprise use.
Access to these resources could help startups develop and test technology solutions, strengthen technical capabilities and explore opportunities to work with larger businesses. The initiative also reflects the growing importance of collaboration between established technology companies, government-linked programmes and early-stage innovators.
The impact will depend on how effectively participating startups can use these resources, develop commercially viable products and build relationships with potential customers.
The Road Ahead for Digital Sovereignty in India
IBM’s approach reflects a wider industry discussion about how organisations can adopt cloud computing and AI while maintaining control over sensitive data and critical systems.
For India, the issue connects several priorities: regulatory compliance, cybersecurity, domestic digital infrastructure, AI development and the growth of deep-tech businesses. Organisations will increasingly need to determine which systems require stronger jurisdictional control and how those requirements can be met without restricting innovation.
Digital sovereignty is unlikely to be a single technology decision. It will involve ongoing choices about infrastructure, data governance, security, service providers and accountability.
As AI adoption expands, the ability to balance technological innovation with effective oversight may become an increasingly important consideration for businesses and public institutions alike.