LONDON, Feb. 26, 2026 (GLOBE NEWSWIRE) -- Data sovereignty is fast becoming make or break for AI-driven network safety projects. Yet new survey data shows that one in six organisations cannot rely on access to facilities with guaranteed data sovereignty, while data sovereignty and privacy risks are cited as the leading factor slowing AI projects in the public cloud. These are the findings of research sponsored by Arqit (Nasdaq: ARQQ, ARQQW) and Intel that are set to be unveiled at MWC Barcelona 2026.

As operators and enterprises push AI deeper into network operations, security teams are being asked to both move faster against escalating threats and ensure sensitive data remains under sovereign control. The latter is becoming more challenging as AI pipelines span public cloud, private infrastructure and edge locations. The result is a growing gap between ambition and practical execution.

The research which included a survey of Mobile World Live (MWL) readers found that data sovereignty has now become a project gating issue. 62% of respondents cite data sovereignty and privacy risks as the biggest factor slowing AI projects in the public cloud. More starkly, one in six (16%) say they have no access to facilities with guaranteed data sovereignty at all, underlining how quickly sovereignty has become king for data security.

Key findings include:

• 62% cite data sovereignty and privacy risks as the biggest factor slowing AI projects when using a public cloud.
• 69% say leveraging AI for network safety is urgent or very important, yet 60% are still testing AI for network security or have not deployed it.
• 80% expect to use confidential computing to achieve data sovereignty in cloud or edge locations in the next 12 months, including 41% planning deployments across both cloud and edge.
• 16% say they have no access to facilities with guaranteed data sovereignty, and only 8% say they have guaranteed sovereignty at the edge.
• Delays to AI transformation are already being felt as operational pain, with impacts on operational efficiency (53%), competitive advantage (48%) and customer experience (45%).
  
  

These findings come at a moment when AI and automation are becoming central to the connectivity industry’s roadmap. AI can help defenders detect anomalies and harden networks at scale, but it also increases the volume, sensitivity and movement of data. Training and operating models often requires sharing telemetry, logs and security signals between various stakeholders and platforms, making sovereignty constraints harder to ignore.

“AI is quickly becoming part of the network security stack, but the data feeding those systems is among the most sensitive that operators and critical infrastructure providers hold,” says Andy Leaver, CEO of Arqit. “This research with MWL shows sovereignty is now a make-or-break requirement, with the majority of teams citing sovereignty and privacy risks as the biggest brake on AI projects in the public cloud.

“At the same time, one in six organisations tell us they cannot guarantee sovereign facilities at all, and only 8% can rely on sovereign edge environments today. That gap is exactly where security leaders need stronger controls for data in transit, better visibility into cryptographies, and a practical means of building trust across cloud and edge.”

Arqit’s work with telecoms and network operators focuses on protecting data in motion across complex, distributed environments. At MWC 2026, Arqit is demonstrating how operators can move faster on network security without losing control of sensitive data as AI workflows expand across public cloud, private infrastructure and edge locations. On Stand 7C11 in Hall 7 in the UK Pavilion, Arqit and Intel will showcase how they are working together to help organisations benefit safely from AI-assisted network safety, and provide genuine, end-to-end sovereignty for enterprise customers.

©Intel, the Intel logo and other Intel marks are trademarks of Intel Corporation or its subsidiaries.

About Arqit
Arqit Quantum Inc. (Nasdaq: ARQQ, ARQQW) secures the world’s most critical data with quantum-safe encryption software. Simple, scalable, and compliant, its products integrate with existing infrastructure, and requires no rip and replace of hardware.

Arqit provides a complete “Detect, Protect, Comply” solution for governments and enterprises that detects and inventories cryptographic assets, protects data, ensures compliance, and safeguards transition to the post-quantum era.

Arqit’s primary product offerings are Encryption Intelligence and NetworkSecure™. Encryption Intelligence detects cryptographic exposure, identifies vulnerabilities, and maps dependencies. NetworkSecure™ protects data in transit with provably secure post-quantum cryptography and contributes to establishment of confidential compute environments for complete data sovereignty.

Arqit is an IDC Innovator for Post-Quantum Cryptography (2024) and a multi-award-winner in quantum-safe security. For more information, visit www.arqitgroup.com

Media relations enquiries:
Arqit: pr@arqit.uk
Investor relations enquiries:
Arqit:investorrelations@arqit.uk

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