Sovereign cloud: USD 80 billion, and 0.6% for Latin America
Spending on cloud infrastructure with jurisdictional guarantees grows 36% this year. The region appears in the table, but with a figure that fits inside everyone else's rounding.
Executive summary
Worldwide spending on sovereign cloud infrastructure would reach USD 80.4 billion in 2026, against USD 59.3 billion in 2025: growth of 36% in a single year, according to Gartner's forecast.
China accounts for 59% of that spending. Europe is the fastest-accelerating region: it would go from USD 6.87 billion in 2025 to USD 23.12 billion in 2027, more than tripling its volume in two years.
Latin America appears with USD 506 million in 2026, or 0.6% of the world total. Even growing at a rate comparable to Europe's, it would still be below USD 1 billion in 2027.
For a company in the region the practical consequence is availability, not price: the residency and jurisdiction guarantees that are already standard in Europe are still negotiated case by case here.
Context
Sovereign cloud is not a different technology. It is the same infrastructure with contractual and operational guarantees about where data resides, which jurisdiction reaches it and who may administer it.
Demand is driven by regulators and large public buyers, not by technical teams. That is why its geography follows the regulatory map rather than the map of general cloud consumption.
Figure 1 · Growth in sovereign cloud spending, 2026 against 2025
% annual changeTable 1 · Sovereign cloud IaaS spending by region
USD millions| Region | 2025 | 2026 | 2027 |
|---|---|---|---|
| China | 37,539 | 47,379 | 54,854 |
| North America | 12,667 | 16,394 | 21,127 |
| Europe | 6,868 | 12,587 | 23,118 |
| Latin America | 278 | 506 | 946 |
Business implications
Put data residency in the tender, not in the architecture. It is a contractual clause with technical consequences, not the other way round. Defining it late forces whole deployments to be redone.
Check regional availability before committing to a date. With a USD 506 million market across the entire region, not every guarantee available in Europe is available here.
Separate compliance from latency. Picking a nearby region improves response time; on its own it does not answer a jurisdictional or audit requirement.
Methodology & data
Single source for spending figures: Gartner's press release of 9 February 2026 and its regional table for 2025-2027. Annual changes and regional shares are our own calculation on that table. Context figures on total IaaS come from Gartner's release of 27 July 2026.
Gartner does not publish the operational definition of "sovereign cloud" in the release: it sits in the subscription report.
References
Gartner (9 February 2026). Gartner Says Worldwide Sovereign Cloud IaaS Spending Will Total $80 Billion in 2026. · Gartner (27 July 2026). Gartner Forecasts Worldwide IT Spending to Grow 14.2% in 2026, Totaling $6.37 Trillion.