The introduction of the National Data and Cloud Policy marked a pivotal moment in South Africa’s digital journey. While often viewed through the lens of regulatory compliance, the Cloud Policy is far more than a box-ticking exercise; it is a framework for digital independence and leadership in cloud computing.
By mandating the localisation of data storage, processing, and infrastructure, the policy enhances data sovereignty, ensuring sensitive information is governed by South African law. This empowers local industries to innovate confidently while supporting the growth of a trusted, resilient digital economy. The policy also addresses crucial aspects of data protection and cybersecurity, which are essential for maintaining the integrity of the nation’s digital assets.
Cloud Policy and data as competitive capital
Globally, data sovereignty is becoming standard practice in cloud computing. Countries are increasingly realising the strategic value of retaining data within their borders, not only for privacy but to protect the intellectual property embedded in datasets that power technologies like Artificial Intelligence (AI). This approach also supports risk management and enhances information security.
“Data sovereignty is critical for managing sensitive data, but it is also important to protect local Intellectual Property (IP),” explains Eckart Zollner, Head of Business Development at Digital Parks Africa. “Cloud sovereignty contains data within sovereign borders, avoiding the potential of a leaking bucket of IP and ensuring compliance with privacy laws.”
He adds: “This also helps us to position the country as digital leaders by investing in local infrastructure and building a thriving digital ecosystem. It’s not just about cloud storage; it’s about creating a robust data centre network that supports our national data protection goals.”
Cloud migration challenges under the policy
Although a cloud-first approach is encouraged by the policy, the path to implementation, especially for large enterprises and the public sector, is complex. This complexity extends to issues of regulatory compliance and adapting to new cloud services.
Migrating from legacy systems to public cloud or hybrid cloud environments can incur significant costs and risks. A phased migration may be more practical but adds operational complexity, requiring careful planning and consideration of cloud security measures.
“Planning, understanding your equipment, and ensuring that critical systems are always available is mission critical,” says Wiaan Vermaak, Group Chief Commercial Officer at Digital Parks Africa. “You also need to consider power consumption, whether using cloud, on-premises or hybrid models—it’s a key factor for cost control and sustainability. Additionally, organisations must focus on data protection strategies that align with both the Cloud Policy and international standards.”
Cloud Policy spurs local innovation and competition
The Cloud Policy stipulates that data must remain within South Africa, which drives the need for local infrastructure. This in turn creates room for local cloud service providers to grow, challenging global players to invest locally to remain competitive.
Importantly, the policy mandates interoperability, ensuring that data remains portable across providers and avoiding vendor lock-in. This approach supports a diverse cloud architecture landscape and promotes innovation in cloud computing.
“This is a real opportunity to innovate within the playing field,” says Vermaak. “It allows smaller or newer providers to compete alongside the global giants, helping to develop a robust, competitive cloud sector that supports local innovation and protects national interests. It’s about creating a balanced ecosystem where public cloud, private cloud, and hybrid cloud solutions can coexist.”
Strategic adoption
For businesses, success under the Cloud Policy begins with understanding it—not just in terms of compliance but as a strategic enabler for data protection and information security.
“You need to look at it pragmatically,” Vermaak advises. “Assess whether a full migration, hybrid approach, or remaining on-prem is best. Understand your infrastructure, cloud cost structures, and what efficiencies you aim to achieve. Consider how the policy impacts your data governance and risk management strategies.”
Though transitioning under the policy can be challenging, the benefits—IP protection, innovation, and economic growth—are significant. It also provides a framework for addressing data sovereignty challenges and ensuring compliance with privacy regulations.
“We want to develop ourselves into a position of digital leadership in our region,” Zollner concludes. “Cloud sovereignty allows us to do that because our data remains contained. South African businesses that plan well and think strategically can turn what could be seen as a compliance hurdle into an opportunity for sustainable growth and digital transformation. It’s about leveraging cloud computing to enhance our national security and economic competitiveness while ensuring the protection of sensitive data.”
