From Privacy to Sovereignty: How PETs Are Evolving to Enable Digital Sovereignty

Privacy-Enhancing Technologies (PETs), traditionally associated with protecting personal data, are increasingly being framed as tools for digital sovereignty because they can help individuals, enterprises, and nations retain control over sensitive assets while using infrastructure they do not own. As organizations rely more heavily on public clouds, SaaS platforms, external AI models, global providers, and cross-border collaboration, sovereignty concerns now extend beyond data location to include control of models, intellectual property, cryptographic keys, policies, and workload access. The text argues that cryptographic protections such as confidential computing and fully homomorphic encryption can shift control from infrastructure owners to the workloads themselves, allowing organizations to use external compute and AI capabilities without granting providers access to sensitive data or models. This approach, described as “sovereignty without isolation,” treats sovereignty as a manageable spectrum rather than an absolute goal and proposes the broader term Sovereignty-Enabling Technologies (SETs) to reflect these technologies’ role in supporting control, resilience, and operational flexibility across interconnected digital ecosystems.

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