Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Icasa's fingerprint Sim plan runs into major telco resistance - Nomvuyiso Batyi, CEO of the Association of Comms & Technology

      Icasa’s fingerprint Sim plan runs into major telco resistance

      30 October 2026
      Why the JSE is keeping its AI agents on a short leash - Alicia Greenwood

      Why the JSE is keeping its AI agents on a short leash

      30 October 2026
      Free Office, free Photoshop: AI is breaking Big Tech's business model

      Free Office, free Photoshop: AI is breaking Big Tech’s business model

      30 October 2026
      Crypto's biggest heist exposes the weak link in exchange security

      Crypto’s biggest heist exposes the weak link in exchange security

      30 October 2026
      Dis-Chem's earnings slide as its tech spending doubles

      Dis-Chem’s earnings slide as its tech spending doubles

      30 October 2026
    • World
      Alleged Israeli spy company heavily targeted Starlink users

      How online ads were used to hunt Starlink users

      28 October 2026
      Anthropic's IPO stands alone

      Anthropic’s IPO stands alone

      23 October 2026
      PHP flaws trigger global scramble as hackers pounce

      PHP flaws trigger global scramble as hackers pounce

      22 October 2026
      OpenAI turns the tables on Apple in trade secrets fight

      OpenAI turns the tables on Apple in trade secrets fight

      15 October 2026
      Google's Gemini 4 Argon is finally here

      Google’s Gemini 4 Argon is finally here

      14 October 2026
    • In-depth
      Why investors are souring on Netflix

      Why investors are souring on Netflix

      22 October 2026

      10 days that changed the course of AI

      21 September 2026
      Meta to the AI industry: slow down without us - Mark Zuckerberg

      Meta to the AI industry: slow down without us

      16 September 2026
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
    • TCS
      TCS+ | Vox on AI, data rules and omnichannel communication for SMEs

      TCS+ | Vox on AI, data rules and omnichannel communication for SMEs

      26 October 2026
      TCS | The Cape Town firm quietly connecting Eskom, Pep and 6 000 ATMs - Réan van Niekerk, Metacom

      TCS | The Cape Town firm quietly connecting Eskom, Pep and 6 000 ATMs

      23 October 2026
      TCS+ | Boards are underestimating the cost of a cyberattack, says Arctic Wolf - Jason Oehley and Andre Den Hond

      TCS+ | Boards are underestimating the cost of a cyberattack, says Arctic Wolf

      22 October 2026
      W&W | LDV's Gerhard Moolman on electric bakkies, fleet orders and 'school fees'

      W&W | LDV’s Gerhard Moolman on electric bakkies and fleets

      9 October 2026
      TCS | Frogfoot sees bigger fibre deals coming - TechCentral Show guests Abraham van der Merwe and Shane Chorley

      TCS | Frogfoot sees bigger fibre deals coming

      8 October 2026
    • Opinion
      AI's boardroom honeymoon is over - Gary Stocks

      AI’s boardroom honeymoon is over

      22 October 2026
      Before South Africa licenses Starlink, it should look at Ukraine - Duncan McLeod

      Before South Africa licenses Starlink, it should look at Ukraine

      21 October 2026
      Nonkqubela Thathakahle Jordan-Dyani

      Why cybersecurity is now a national security issue for South Africa

      15 October 2026
      When a machine can choose, who does it become? Fanie van Rooyen

      When a machine can choose, who does it become?

      9 October 2026
      Let South Africans jailbreak their way to digital sovereignty - Dirk de Vos

      Let South Africans jailbreak their way to digital sovereignty

      5 October 2026
    • Company News
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM.com
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Publishared
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech and payments
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Sections » AI and machine learning » The data sovereignty paradox

    The data sovereignty paradox

    Promoted | Altron explores why absolute data sovereignty remains elusive across cloud and AI-driven digital ecosystems.
    By Altron Digital Business27 February 2026
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    Get breaking news on WhatsApp

    The data sovereignty paradox - Altron Digital Business

    Data sovereignty has become a top boardroom issue. Regulators demand it, customers expect it, and CIOs and chief technology officers are tasked with delivering it. The assumption is simple: if your data resides locally, under your jurisdiction, you control it.

    However, as explored in episode 5 of Altron’s Local Logic podcast series — in which technology leaders discuss how South African organisations can harness AI, data and digital innovation to deliver meaningful customer value — this assumption may be flawed.

    AI expert Steven Sidley and Bongani Andy Mabaso, CTO of Altron Group, discussed how this results in a paradox: the more organisations chase absolute data sovereignty, the more they discover how elusive true control really is.

    The illusion of complete control

    At the heart of the sovereignty debate is the belief that local data residency equals control. Sidley challenges that premise: “I’ve always considered the concept of data residency being in this day and age, utterly, utterly absurd.”

    His argument is not that jurisdiction doesn’t matter, but that modern digital infrastructure makes the idea of purely local control almost impossible. Cloud systems are, by design, distributed and redundant.

    As he explained: “Many of the big cloud providers have started building data sovereign, safe data centres. I don’t fully believe it, because all of those big hyperscalers have to have backup data centres. That’s their entire model. If Google or Amazon’s data centres in Africa go down under a flood or a bomb or anything else, they are backed up elsewhere in the world.”

    Many of the big cloud providers have started building data sovereign

    The global architecture that makes hyperscale cloud resilient is the same architecture that complicates sovereignty. Resilience depends on geographic distribution. Distribution complicates jurisdiction.

    Mabaso adds another layer of complexity: extraterritorial legal reach.

    Extraterritorial reach

    He highlights the implications of the US Cloud Act, which states that, if for whatever reason, law enforcement in the US decides that they want to investigate an organisation in South Africa, if they are provided with data services by any American companies, then the FBI or Interpol can actually compel that organisation to reveal your data sets.

    Even if the data sits in a South African data centre, the corporate structure of the provider may expose it to foreign legal processes. When challenged, cloud providers acknowledge the possibility. “If you go and you challenge a cloud service provider on that, they’ll tell you, well, it’s true, but they’ll give you all sorts of reasons on why it’s very unlikely to happen, but it is a real risk that actually exists.”

    The paradox becomes clear: you can localise infrastructure, but you cannot fully localise legal exposure in a globally interconnected system.

    The data sovereignty paradox

    Security versus sovereignty: a false choice?

    Another persistent confusion in the debate is the conflation of data security with data sovereignty.

    Sidley invokes the original architect of AWS, Willem van Biljon, who argued that “people who think that residency is important, do not realise that if you go to Amazon to store your data, notwithstanding the fact that it lives in another country, your actual data at Amazon Web Services is the safest in the world because they have spent US$50-billion on perimeter control and encryption”.

    From a pure cybersecurity perspective, hyperscalers may offer stronger protection than most on-premises environments. Few enterprises can match the billions invested in encryption, perimeter defence and monitoring.

    Security protects against breaches, while sovereignty addresses jurisdiction

    Mabaso agreed but drew a clear distinction.

    “Steven has raised an important point around cybersecurity and how secure your data is in whatever environment. And I think it would be difficult for anyone to argue that hyperscalers have not invested more than anybody else in making sure that security in that environment is as strong as it can possibly be. However, I think it’s a slightly different argument regarding laws.”

    Security protects against breaches, while sovereignty addresses jurisdiction.

    To listen to the podcast series, click here

    Consider the entire landscape

    Mabaso frames the decision more holistically. “I do think that you do have to consider the entire landscape end to end. Yes, there’s the technological risk, and how do you secure that? But there’s also the geopolitical risk and how do you make sure that you’ve got the right mix?”

    Sovereignty is only one factor among several. “One is security, two is cost, because depending on the solution that you go with, it will have a very different cost profile. Three is the regulatory environment in which you operate in.”

    The regulatory environment is particularly complex in South Africa. As TransUnion’s CEO Lee Naik explained in episode 2: “Popia (the Protection of Personal Information Act) is stronger than GDPR (General Data Protection Regulation). GDPR only protects consumer data. It does not protect corporate data. Popia protects consumer data and corporate data.”

    The data sovereignty paradox - Altron Digital Business

    Moreover, he said: “The South African law says if you’re going to use Popia, if you’re going to put the data somewhere else, it has to have a set of regulations that are at least as stringent as the local ones. And right there we’ve got a problem, because it’s telling you you can’t put your corporate data in Europe.”

    Here, sovereignty is not simply a philosophical ideal. It creates practical constraints. Local law may restrict cross-border transfer, while global cloud economics incentivise it. Security and sovereignty are not interchangeable, and optimising for one does not automatically solve the other.

    AI’s data sovereignty challenge

    If cloud computing complicates sovereignty, AI fundamentally transforms it. Sidley described what he calls a “dirty little secret” of large language models.

    “AI has brought a complicating wrinkle into this. One of the dirty little secrets of AI, which is unknown to most people, even those who use it, is that the data … you don’t find any data, you find a set of statistical relationships in a matrix,” he said.

    Traditional data governance assumes identifiable datasets that can be located, deleted or transferred. LLMs don’t store data conventionally. They encode patterns.

    If cloud computing complicates sovereignty, artificial intelligence fundamentally transforms it

    This creates a new risk vector.

    “If you are building an AI system which is going to use the vernacular language capability of the LLMs in order to be able to chat casually with a user, you are in danger in having all the data about that chat, all the data that’s provided as context, being sucked in as training and it becomes ungovernable once it’s pulled in as a training data set.”

    He warned: “There is not only a danger, in my view, there is an absolute certainty of data leakage if one is using some of the frontier LLMs.”

    Mabaso echoed the sentiment. “Corporations have gone all in on using these large public LLMs in production, or even proof of concept, for some of their workloads. But the problem with that is data leakage is almost always guaranteed.”

    The solution, he argued, lies in proximity and control. “The best thing for corporates around AI adoption is how do I ensure that I can use a language model or any type of model that’s contextual, that’s smaller, that’s more efficient and generally runs as close as possible to where your data resides.”

    The data sovereignty paradox - Altron Digital Business

    AI makes sovereignty even harder to define. Once data is absorbed into model weights, it becomes statistically embedded rather than geographically located. It cannot simply be “brought home”.

    Living with the paradox

     The data sovereignty paradox is not about choosing between global cloud and local control. It is about recognising that complete sovereignty is an illusion in distributed digital ecosystems.

    Jurisdiction, security, cost, resilience, compliance and AI governance all intersect. Sovereignty is no longer a binary state. It is a spectrum of risk management decisions.

    The organisations that navigate this successfully will not chase absolute control. They will design for informed trade-offs: understanding that in a world of hyperscalers and AI, sovereignty is less about geography and more about governance.

    To listen to the podcast series, click here

    • Read more articles by Altron Digital Business on TechCentral
    • This promoted content was paid for by the party concerned
    Add TechCentral as a preferred source on GoogleFollow TechCentral on Google NewsGet breaking news on WhatsApp


    Altron Altron Digital Business Amazon AWS Bongani Andy Mabaso Lee Naik Steven Sidley TransUnion Willem van Biljon
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleNetflix walks away from ‘irrational’ Warner Bros deal
    Next Article Cell C to SMEs: We’ll be your partner, not just a provider

    Related Posts

    Rate hikes threaten a household recovery built on cheaper credit - John Gellatly

    Rate hikes threaten a household recovery built on cheaper credit

    29 October 2026
    Regulator hits FNB with R1-million Popia fine

    Regulator hits FNB with R1-million Popia fine

    27 October 2026
    Winners, from left: Zandile Monaisa (Rand Refinery), Sibongakonke Kheswa (PSG Capital), Stefan Links (Forestry South Africa), Thabang Modiba (Mondelez International), Charmaine Ncube (Razor PR), Shaun Burger-Smal (Bestmed Medical Scheme), Nandipha Ngcobo (Transnet), Tracy Mulwela (Vodacom), Cheryl-Lynn Freeman (Mzansi Business Services), Yasheen Harrielall (Zutari), Valentine Mabaso (Taonga Business Group) and Thabang Thlaku (African Rainbow Minerals). Image: Rising Star Awards

    Celebrating South Africa’s rising stars: the leaders shaping what comes next

    19 October 2026
    Add A Comment

    Comments are closed.

    Company News
    How to protect your business from digital banking scams and fraud - Standard Bank

    How to protect your business from digital banking scams and fraud

    30 October 2026
    Paratus continues to reshape connectivity in Namibia

    Paratus continues to reshape connectivity in Namibia

    29 October 2026
    Rate hikes threaten a household recovery built on cheaper credit - John Gellatly

    Rate hikes threaten a household recovery built on cheaper credit

    29 October 2026
    Opinion
    AI's boardroom honeymoon is over - Gary Stocks

    AI’s boardroom honeymoon is over

    22 October 2026
    Before South Africa licenses Starlink, it should look at Ukraine - Duncan McLeod

    Before South Africa licenses Starlink, it should look at Ukraine

    21 October 2026
    Nonkqubela Thathakahle Jordan-Dyani

    Why cybersecurity is now a national security issue for South Africa

    15 October 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Icasa's fingerprint Sim plan runs into major telco resistance - Nomvuyiso Batyi, CEO of the Association of Comms & Technology

    Icasa’s fingerprint Sim plan runs into major telco resistance

    30 October 2026
    Why the JSE is keeping its AI agents on a short leash - Alicia Greenwood

    Why the JSE is keeping its AI agents on a short leash

    30 October 2026
    Free Office, free Photoshop: AI is breaking Big Tech's business model

    Free Office, free Photoshop: AI is breaking Big Tech’s business model

    30 October 2026
    Crypto's biggest heist exposes the weak link in exchange security

    Crypto’s biggest heist exposes the weak link in exchange security

    30 October 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}
    🇿🇦 Sign up to the TechCentral newsletter