Electricity and Control August 2025

Industry 4.0 + IIoT

Turning compliance into a competitive edge The introduction of the National Data and Cloud Policy just over a year ago signalled a major step for South Africa in terms of digital transformation. Although on the surface it may seem to set yet another compliance hurdle, it represents a valuable opportunity for South Africa to drive digital leadership. This is the view of Digital Parks Africa.

B y localising cloud data storage, processing and infrastructure, the policy significantly enhances data sovereignty, which in turn ensures that data is governed by local laws, enabling the country to protect sensitive information, support local innovation, and build a trusted, resilient digital economy. A potential competitive advantage Data sovereignty is increasingly becoming global best practice, as governments and industries worldwide recognise the need to keep data within their sovereign borders. Many countries have begun to introduce policies or frameworks that prioritise data sovereignty, as this principle is increasingly seen as the foundation for responsible and consistent data security. One of the main reasons for this, beyond increasing concerns around cybersecurity and data privacy, is that data represents significant intellectual property in a digital world and protecting this is essential in maintaining a strategic competitive advantage. Cloud solutions represent the aggregation point for large datasets, and these form the basis for new technologies such as artificial intelligence. In order for SA to develop its leadership in this arena, these datasets must be maintained inside the country’s geographic territory. “Data sovereignty is critical for managing sensitive information; it is also important in protecting local intellectual property (IP). Cloud sovereignty contains data within sovereign borders, avoiding the possibility of a leaking bucket of IP. It means data and IP are controlled and

managed within South African sovereign structures. This also helps the country to position itself as a digital leader by investing in local infrastructure and building a thriving digital ecosystem,” says Eckart Zollner, Head of Business Development at Digital Parks Africa. Tackling the complexities While cloud first is seen as the preferred policy, it is o“en not a simple or straightforward goal to achieve. Migrating legacy systems to cloud environments is complex, especially for larger enterprises and governments. Moving to the cloud involves the operational expense of paying for the service, and there can be a significant expense attached to the migration. A phased approach is generally preferred, but this tends to add layers of complexity that need to be carefully considered. In addition, any hidden, underestimated or unanticipated costs can quickly erode the benefits. “Planning, understanding your equipment and ensuring that critical systems are always available is key in any migration. It’s important to assess the landscape carefully, understand your own infrastructure, cloud cost structures, and what value and/ or eˆiciencies you are looking to achieve. Operational realities like power consumption, whether you make use of the cloud, on-premises infrastructure or a hybrid solution, also need to be considered in terms of costs and long-term sustainability,” says Wiaan Vermaak, Group Chief Commercial Oˆicer at Digital Parks Africa. A strategic advantage South Africa’s cloud sovereignty policy is in essence about compliance: it requires that data remains within the country, which

means infrastructure needs to be hosted locally, and that will foster digital innovation from cloud providers. Global hyperscalers will be required to invest in the country to remain relevant, and it presents an opportunity for local industry to grow, innovate and facilitate greater competition, directly supporting job creation and skills development in South Africa. Keeping sensitive data and intellectual property within the country also safeguards innovation. The National Data and Cloud Policy emphasises the need for interoperability and mandates that cloud providers build open,

South Africa’s National Data and Cloud Policy promotes data sovereignty and opens opportunities for local players and innovators.

6 Electricity + Control AUGUST 2025