Data sovereignty risks expanding to EU and Southeast Asia for Azure/M365

Dutch CLOUD Act accusations and localization push in EU; new Proximus NXT sovereign cloud partnership. Southeast Asia sleepwalking into data sovereignty crisis with 24% data center growth, creating regulatory exposure for Azure. Compliance costs and adoption headwinds increasing. New Netskope report confirms AI governance lag in Europe, with OneDrive/GitHub as top malware distribution platforms, reinforcing shadow AI risks.