Further, the analyst sees Nadella’s framing benefiting all hyperscalers.
“If sovereignty is defined less by where workloads run and more by who controls models, data flows, and governance, then global platforms with deep AI, data, and security stacks become the default foundation. Hyperscalers are well-positioned here because they can argue that customers retain control through encryption, customer-managed keys, model deployment choices, and enterprise governance without fragmenting infrastructure by region,” Walter said.
Huff and puff over past regulatory hurdles
Nadella’s comments are more likely a response to long-running tension between European regulatory priorities and hyperscaler operating models, one that has repeatedly put Microsoft under pressure, said Shelly DeMotte Kramer, principal analyst at Kramer & Company.
