How will Data Sovereignty Impact Data Centre Design?

Data sovereignty has emerged as a priority for IT decision-makers across EMEA as legislators examine how to ensure data stored on European soil remains subject to local governance structures rather than foreign jurisdictions. 

The principle that data must comply with laws in the country or region where it is collected, stored or processed is driving changes in how organisations plan infrastructure – including data centres.

Simone Larsson, Head of Enterprise AI, EMEA at Lenovo, says: "The issue of where in the world data is stored and processed is set to be one of the defining debates of technology in the 21st century.

“Data sovereignty is an increasingly high priority both for legislators and IT decision-makers, not least because of the growing masses of data being produced.”

Lenovo research indicates that 88% of IT decision-makers view data sovereignty as a priority, with 99% expecting it to remain critical over the next five years. 

The pressure to localise cloud infrastructure in EMEA stems from evolving legislation and concerns about legal reach over data. There is the issue of foreign jurisdictions having legal reach over data stored on European soil and legislators are looking at ways for data to be stored natively.

Simone says: “Data sovereignty is becoming a defining factor in how trust is built and maintained as consumers generate and share more data.

“Alongside concerns such as latency (allowing for the delivery of speed-dependent services such as edge computing) and sustainability, control over where data resides and is processed will define the data centre of the future.”

AI workloads driving electricity demand in data centres

The expansion of AI deployments is creating pressure on data centre capacity and power consumption. Lenovo research shows that 90% of IT decision-makers believe AI will increase organisational data usage over the next decade, but only 41% admit their organisation is not prepared to integrate AI efficiently.

An International Energy Agency report projects that electricity demand from global data centres will more than double by 2030, with AI serving as the primary driver. Demand from AI-optimised data centres is expected to more than quadruple by the same date.

Simone says: "The rising use of AI by organisations is driving the creation of data – increasing the power requirements of data centres.

“As more data is required across the EMEA region, the issue of where it is stored and generated will become more important.” 

The combination of sovereignty requirements and AI-driven growth means organisations must address both regulatory compliance and infrastructure capacity simultaneously.

“Digital sovereignty is about choice, control and confidence in where data and infrastructure is located and consequently governed,” explains Simone.

“For enterprise IT decision-makers, open architecture and flexible deployment, along with partnerships with local cloud providers, will be crucial to delivering data sovereignty going forward.”

Data centre infrastructure fails sustainability targets

Many organisations are struggling to meet environmental objectives with current infrastructure. Lenovo cites how 47% of IT leaders admit their infrastructure does not support energy efficiency or carbon-reduction goals.

The challenge is compounded by the need to balance multiple priorities. The growth of real-time applications and edge computing in sectors including retail and manufacturing means that latency has become a critical concern. Research shows that 94% of IT decision-makers identify latency as a key issue both now and in the coming years.

"In the EMEA region particularly, data sovereignty is expected to remain an urgent priority, and the data centres of tomorrow will also have to scale for AI, and deliver on sustainability targets by operating with high energy efficiency,” says Simone.

“Decision-makers in the IT sector must also carefully balance the need to deliver the low latency required for technologies such as edge computing, while also dealing with demands for local data control.”

Lenovo proposes liquid cooling for energy reduction

Technologies including liquid cooling systems offer paths to reducing energy consumption in data centres. Lenovo’s Neptune Liquid Cooling technology can remove up to 98% of system heat directly at source, reducing reliance on air-cooling methods.

“The reality is that, today, many organisations are far from their goals with nearly half of IT leaders (47%) admitting that their current infrastructure does not support energy efficiency or carbon reduction goals,” says Simone.

“Innovative technologies and optimised and hybrid AI-ready infrastructure offer a path to the goal of a sovereign, sustainable data centre, with technologies such as Neptune Liquid Cooling reducing energy consumption and reliance on power-hungry air-cooling methods.

“By removing up to 98% of system heat directly at source, warm water cooling offers a future-ready platform that allows businesses to scale their use of AI sustainably.”

Lenovo designs include underground and floating concepts

Lenovo has developed concept designs for data centres that address sovereignty, sustainability and latency through location choices and cooling technology. The designs take the rack server data centre model and leverage water cooling technology to boost their sustainability, while also making use of natural resources, disused spaces and unexpected locations.

The Data Centre Bunker concept places infrastructure in disused tunnels, bunkers or transport systems underground. 

“Utilising disused tunnels, bunkers or transport systems, the Data Centre Bunker places the technology underground to minimise the need for new spaces to increase capacity,” explains Simone.

“This reduces land use while allowing for facilities to be set up in central locations with lower impact. Benefitting from enhanced security resilience, the subterranean location creates a naturally efficient heat management system."

The Data Village concept involves modular, stackable units located near water sources such as rivers or canals. 

“Located close to water sources such as rivers or canals, the Data Village involves a modular, stackable brick or pod system of data centres linked to city needs,” says Simone.

“This location benefits from enhanced liquid cooling and the ability to transfer waste heat to power or heat local amenities.”

“This reduces land use while allowing for facilities to be set up in central locations with lower impact. Benefitting from enhanced security resilience, the subterranean location creates a naturally efficient heat management system."

The Data Village concept involves modular, stackable units located near water sources such as rivers or canals. 

“Located close to water sources such as rivers or canals, the Data Village involves a modular, stackable brick or pod system of data centres linked to city needs,” says Simone.

“This location benefits from enhanced liquid cooling and the ability to transfer waste heat to power or heat local amenities.”

A related Data Spa concept uses geothermal energy and blends into natural landscapes. 

“Powered by geothermal energy, the Data Spa concept blends into natural landscapes (such as a valley, lagoon or geothermal pools), creating a low-visual-impact and biophilic data centre,” describes Simone.

The Floating Cloud concept involves suspending or floating data centres at altitudes of 20-30 kilometres. 

“A novel concept involving the suspension or floating of the data centre in the air, at an altitude of 20-30KM (safely away from commercial aircraft), with 24/7 energy from solar power and using pressurised closed liquid cooling loops to prevent air pollution,” says Simone.

“This design can be deployed anywhere, but the question of data sovereignty in international airspace would need to be addressed."

Looking ahead, Simone emphasises the importance of innovative thinking and creativity.

“Creative approaches – spanning hybrid architectures, warm water cooling and as-a-service models – can enable performance without compromising local compliance or environmental responsibility,” Simone summarises.

“Ultimately, the ability of data centres to uphold digital independence while meeting the needs of an increasingly data-driven world will be a key measurement of their success. Building for sovereignty today is the key to ensuring resilience, trust, and innovation in the decades ahead.”