India is considering a rule that would require “Made-in-India” sovereign cloud systems for critical sectors like energy, telecom, and banking. The move follows rising cybersecurity fears and geopolitical pressure, highlighted when Microsoft temporarily suspended cloud services for Nayara Energy. Officials say heavy reliance on overseas providers could let disruptions cripple businesses, but domestic cloud capacity still lags.
The Centre is considering a mandate requiring companies in energy, telecom and financial services to host their core digital infrastructure only on Made-in-India sovereign cloud systems. Officials cite rising geopolitical risks and cybersecurity concerns, heightened after Microsoft briefly blocked Nayara Energy services linked to EU sanctions. Microsoft says an automated system wrongly assumed EU jurisdiction, and the move also aims to reduce foreign dependency.
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Larsen & Toubro has incorporated wholly owned subsidiary Vyoma.AI to launch data centres and AI infrastructure, positioning it as a next-gen sovereign AI cloud. The company plans jurisdiction-first architecture so enterprise data, workloads and systems stay within approved Indian regulatory boundaries. Vyoma follows L&T’s NVIDIA partnership and its AI-first sovereign cloud platform launched earlier this year.
BT Group is partnering with Nscale to develop up to 14MW of AI data centre capacity across three UK locations, powered by Nvidia infrastructure. The project expands BT’s sovereign data services, targeting public sector and business customers that want stronger data resilience and more local AI capability within Britain.
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