Microsoft and Core42 have released a comprehensive whitepaper titled ‘Balancing Innovation and Compliance in the AI Era: Core42 Sovereign Public Cloud Leveraging Microsoft Azure’. The whitepaper explores the transformative role of sovereign public cloud solutions in shaping the UAE’s digital future, providing insights and best practices for technology leaders.
Key Highlights of Sovereign Public Clouds
Sovereign public clouds are crucial for data sovereignty compliance, ensuring that data is stored, processed, and managed within specific regions according to local laws. They enhance security and privacy through advanced measures like strict access controls and encryption. These clouds provide organizations with greater operational control, enabling compliance with legal requirements while managing data access.
Benefits of Sovereign Clouds
- Data Sovereignty: Ensures compliance with local regulations regarding data storage and processing.
- Enhanced Security: Implements advanced security measures to protect data.
- Operational Control: Allows organizations to manage data access according to legal requirements.
- National Interests: Supports local digital infrastructure and innovation.
- Scalability and Cost Efficiency: Maintains the benefits of public cloud services while adhering to local regulations.
The whitepaper highlights real-world UAE use cases, including AI-powered fraud detection in financial services and predictive diagnostics in healthcare. These examples show how sovereign infrastructure can drive transformation while maintaining regulatory compliance.
UAE’s Vision for Digital Future
The UAE is heavily investing in AI and cloud technology to drive its digital future. Initiatives like Abu Dhabi’s strategy to become the world’s first fully AI-native government by 2027 are pivotal. The country’s sovereignty-first digital economy vision is being realized through foundational infrastructure like the Core42 Sovereign Public Cloud powered by Microsoft Azure.

Sherif Tawfik, Chief Partnership Officer – AI & Cloud for Sovereignty at Microsoft, emphasized the commitment to supporting the UAE’s digital transformation vision. Adrian Hobbs, Chief Technology Officer at Core42, highlighted the partnership’s significance in driving digital innovation while ensuring compliance.
The collaboration between Microsoft and Core42 has been instrumental in the UAE’s digital transformation. A recent multi-year agreement with the Abu Dhabi Government aims to implement a sovereign cloud system, enhancing efficiency and innovation in government services.
Global Impact
Global spending on sovereign cloud solutions is projected to nearly double from $133 billion in 2024 to $259 billion by 2027. This growth underscores the need for governments and industries to integrate digital sovereignty into their technology strategies.
By adopting sovereign cloud models, UAE companies can confidently embrace digital transformation, aligning technological progress with national priorities. The whitepaper demonstrates how embedding data governance, compliance, and national security at the heart of digital transformation can set a global benchmark for AI-era leadership.