Enterprise customers demand compute in their jurisdiction. Snowflake’s CEO put it bluntly at CES 2026: “A customer in Germany wants no part of that data going to another continent.”
This isn’t just regulatory compliance—it’s about control. Enterprises want sovereignty over:
Their AI infrastructure
Their data
Their models
They want to know where their information lives, who can access it, and under whose laws it operates.
Global Distribution by Design
The result: AI infrastructure has been distributed globally rather than concentrated in hyperscaler regions. Every major economy has built or is building national AI infrastructure—not just for capability, but for independence.
Throughout 2025, major sovereign AI investments came from:
The Middle East
Asia (multiple countries)
Europe (national and EU-level)
The New Market Structure
Every geography became a market. The AI infrastructure market fragmented by design, not by accident.
This creates new dynamics:
Regional players gained relevance
Partnerships with sovereign funds became strategic necessities
Data sovereignty requirements forced AI infrastructure decentralization. Every geography became a market. Global distribution replaced hyperscaler concentration—and this fragmentation is permanent.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
