KniTT, a partner of the SEED Group, has launched Elysium, an AI-powered private cloud platform designed to address rising data sovereignty concerns and geopolitical risks in the Middle East.

The launch comes at a time when regional spending on sovereign data cloud infrastructure is projected to triple. Organizations are increasingly seeking alternatives to public cloud hyperscalers due to heightened security threats and physical risks to data centers.

Addressing Geopolitical Risks with a Private Cloud Platform

According to data from Gartner, approximately 20 percent of global cloud workloads are undergoing geopatriation. This process involves returning digital data and computing power back under local or national control to mitigate security risks. The launch of this private cloud platform directly addresses these concerns by keeping data within national borders.

“With focus on securing data control on the rise, enterprises are now facing new set of challenges, including unpredictable cloud costs, increasing cybersecurity exposure, vendor lock-in, and limited grip over data residency. What was once a straightforward shift to the cloud is now a more complex strategic decision.”

Praveen Raveendran, Founder & CEO of KniTT
Praveen Raveendran, Founder & CEO of KniTT
Praveen Raveendran, Founder & CEO of KniTT

Sovereign Cloud Investments in Saudi Arabia and UAE

The shift toward localized data storage is led by Saudi Arabia and the UAE. Cumulative sovereign cloud projects in these nations currently exceed $6 billion. These initiatives are projected to unlock more than $200 billion in economic value over the medium to long term.

By deploying a private cloud platform, enterprises can maintain strict compliance with local data residency laws. This approach helps organizations avoid systemic risks associated with concentrating workloads within a small number of global hyperscale providers.

Elysium Architecture and Cost Efficiency

Unlike traditional cloud models that require moving data to third-party infrastructure, Elysium delivers cloud capabilities directly to existing data locations. The platform is built on a Zero-Trust security architecture, ensuring data sovereignty while maintaining interoperability with public cloud systems.

Furthermore, the platform offers a minimum of 30 percent reduction in the total cost of ownership. This cost efficiency helps enterprises manage unpredictable operational expenses while improving their overall security posture.

Future Outlook for Regional Digital Economies

These sovereign cloud initiatives are expected to support the growth of non-oil sectors. In Saudi Arabia, the digital economy accounted for 15.6 percent of GDP as of 2025, with the ICT sector contributing over $63 billion. Meanwhile, the UAE aims to increase its digital economy contribution to 19.4 percent of GDP by 2031, reaching a value of $140 billion.