Data sovereignty is often framed as a question of location, but increasingly, it is a question of control.
This is according to Shanaaz Moosa, Sales Director for public sector and cyber security at OpenText,who notes that where and how data is stored impacts trust, which in turn impacts operations, trust and competitiveness. This is according to Shanaaz Moosa, Sales Director for Public Sector and Cybersecurity at OpenText, who believes that data location and governance have become strategic business considerations, influencing organisational trust, resilience and competitiveness.
As companies expand globally and rely more heavily on cloud services and digital platforms, data sovereignty is a priority for most – especially organisations in highly regulated sectors.
“Where data resides is important,” Moosa says. “But as AI adoption and digital transformation accelerate, the critical questions are no longer just where information resides, but who controls access, governance, usage and accountability. The real risk is not that data leaves South Africa. The real risk is that control leaves South Africa.”
She points out that when organisations lose control of their information, they risk far more than non-compliance. They risk customer trust, competitive advantage, intellectual property and ultimately their ability to determine how their most valuable asset is used.
“South Africa's sovereignty debate must move beyond local versus offshore hosting. The real challenge is building trusted information ecosystems that deliver visibility, governance and resilience, regardless of where data resides,” she says.
Moosa says trust is earned through control, and competitive advantage is created through confidence.
In South Africa, enterprise technology leaders are realising that data sitting in Johannesburg doesn't automatically make it sovereign, and are seeking greater control over their critical data, she says. They want to know who controls access, who owns the encryption keys, who governs the data, who can audit usage, who can respond during a cyber incident and who controls AI models trained on that data. The challenge becomes: 'How do we maintain control, compliance and visibility regardless of where the data resides?'
“Sovereignty without governance creates a false sense of security. Governance without visibility creates risk. The future calls for both,” she says.
Beyond compliance
Moosa says while compliance with data protection laws such as POPIA and GDPR are a key driver of data sovereignty, customer trust is another compelling reason to focus on data sovereignty. Storing and processing data within a customer’s own country or region signals transparency and accountability, illustrating that the company respects privacy rights and regulatory standards. This can give businesses a distinct competitive advantage by positioning them as trusted and compliant partners in global markets.
Data sovereignty can also improve operational efficiency by enabling organisations to align their data infrastructure with local regulations and performance needs. When data is stored and processed closer to its source, it often results in faster access speeds, lower latency and more reliable service delivery.
Sovereign private cloud
Moosa notes that OpenText Private Cloud enables enterprises to operate globally while maintaining strict control over where and how their data is stored, processed and protected.
OpenText Private Cloud is purpose-built for organisations that need to be global in scale but local in execution. With data centres strategically located across key regions, OpenText provides customers with the flexibility to choose where their data resides. This ensures that sensitive information remains within national borders, in compliance with data sovereignty requirements. This allows organisations to maintain data sovereignty with control and visibility – all of which is better for business.
“Data sovereignty is no longer a storage conversation. It is a trust conversation. And in the digital economy, trust may be the most valuable competitive advantage of all,” Moosa concludes.
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