German companies prioritize digital sovereignty over cost

German companies are increasingly prioritizing digital sovereignty, often being willing to accept higher costs and greater complexity to maintain control over their data and reduce dependence on global hyperscalers. According to the ‘Digital Sovereignty 2026’ study by Plusserver, 71.1% of respondents view digital sovereignty as very important or business-critical.

Key drivers for this shift include IT security, cybersecurity, and data control. While companies seek to avoid vendor lock-in, a Bitkom study highlights the practical difficulties of doing so; 59% of surveyed companies reported that technical challenges, such as data migration, prevent them from switching providers.

Regulatory frameworks like NIS2 and DORA are also pushing companies, particularly in the finance and healthcare sectors, to focus on data residency and IT architecture sovereignty to ensure compliance and operational resilience.