French enterprises are rapidly evolving their cloud strategies to support AI tools and comply with data sovereignty requirements, according to the 2025 ISG Provider Lens® Private/Hybrid Cloud — Data Center Services report by Information Services Group (ISG), released on September 5, 2025. The report highlights how investments in AI-ready infrastructure and sovereign cloud solutions are reshaping France’s hybrid cloud market, driven by the need for compliance, scalability, and sustainability.
French firms prioritize AI-ready hybrid clouds for competitiveness.
Sovereign cloud solutions ensure data privacy and compliance.
AIOps enhances IT operations with GenAI-driven automation.
71% of enterprises rank security as a critical factor for cloud solutions.
High-performance data centers support AI with liquid cooling, SDN.
Orange Business leads in five ISG Provider Lens® quadrants.
The 2025 ISG report, evaluating 54 providers across five quadrants, finds that French companies are investing heavily in AI-ready infrastructure to stay globally competitive. “The growing need to support AI while meeting data sovereignty requirements has forced French companies to innovate,” said Julien Escribe, partner and managing director, SEMEA, ISG. Sovereign cloud solutions and high-performance data centers are being adopted to optimize AI operations while ensuring compliance with local regulations, aligning with SEO terms like “AI-ready cloud” and “data sovereignty solutions.”
French enterprises are increasingly adopting AIOps, leveraging generative AI (GenAI) to enhance IT operations, knowledge searches, and incident resolution. This improves data analysts’ productivity and automates large-scale IT infrastructures. Additionally, FinOps is being integrated to optimize cloud spending, making operations more cost-efficient. These trends support keywords like “AIOps for IT operations” and “cloud cost optimization,” reflecting the market’s focus on efficiency and scalability.
To address data sovereignty, French firms are integrating GenAI within private cloud hosting services, ensuring data remains local and secure. This approach supports custom AI development while meeting regulatory requirements. “French enterprises are prioritizing hybrid cloud integration for scalability and flexibility,” said Pedro L. Bicudo Maschio, distinguished analyst, ISG, and lead author of the report. These solutions cater to industries like finance and healthcare, enhancing SEO terms like “sovereign cloud” and “secure AI development.”
The demand for AI-capable, high-performance data centers is rising, with providers offering advanced solutions like liquid cooling and software-defined networking (SDN). France’s nuclear energy supplies support these data centers’ efficiency and alignment with zero-carbon goals. The report names Orange Business as a Leader in five quadrants, with Kyndryl, Sopra Steria, and others recognized for their tailored solutions, reinforcing terms like “high-performance data centers” and “sustainable cloud solutions.”
The ISG report underscores France’s leadership in adopting AI-driven hybrid and sovereign cloud solutions. By balancing innovation, compliance, and sustainability, French enterprises are setting a global standard for cloud transformation. For more insights, visit the ISG Provider Lens® Focal Points briefing.
ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth.
TechIntelPro empowers B2B technology decision-makers with the latest industry trends, deep insights, leadership perspectives and actionable intelligence to drive both organizational and professional milestones—and thrive on the tech pulse.