62% of respondents cite data sovereignty and privacy risks as the biggest factor slowing AI projects in the public cloud
Rhea-AI Summary
Arqit (Nasdaq: ARQQ) and Intel-sponsored research finds 62% of respondents cite data sovereignty and privacy risks as the top factor slowing AI projects in the public cloud. The survey also reports 16% of organisations have no access to facilities with guaranteed data sovereignty and only 8% have sovereign edge environments.
The research, to be unveiled at MWC Barcelona 2026, shows urgent AI demand but rollout delays: 69% rate AI for network safety as urgent, yet 60% are still testing or have not deployed AI for security. 80% expect to use confidential computing within 12 months.
Positive
- 62% cite data sovereignty as the main brake on public-cloud AI projects
- 80% expect to deploy confidential computing within 12 months
- 69% view AI for network safety as urgent or very important
Negative
- 16% have no access to facilities with guaranteed data sovereignty
- Only 8% report guaranteed data sovereignty at the edge
- 60% are still testing or have not deployed AI for network security
Key Figures
Market Reality Check
Peers on Argus
ARQQ is up 2.75% while closest peers show mixed moves: ALLT down 27.64%, GRRR down 2.29%, XNET down 0.83%, BLZE up 3.42%, and TLS flat. This points to a stock-specific response to AI sovereignty and security positioning rather than a broad sector rotation.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 24 | Product integration | Positive | +7.1% | Quantum-safe keys pre-installed for confidential compute on Intel NetSec cards. |
| Feb 19 | Strategic partnership | Positive | +3.4% | Integration of Arqit NetworkSecure with 6WIND’s virtual service router for telcos. |
| Jan 22 | Product launch | Positive | +1.6% | Launch of Encryption Intelligence for automated cryptographic discovery and PQC migration. |
| Dec 09 | Earnings results | Neutral | +0.0% | Fiscal 2025 results with <b>$530,000</b> revenue and contract pipeline detail. |
| Dec 03 | Technology collaboration | Positive | +7.1% | Quantum-resistant encryption proof of concept with Sparkle on optical networks. |
Recent positive technology and partnership announcements have typically been followed by upward price reactions, suggesting the market has rewarded Arqit’s network security and quantum-safe positioning.
Over the last few months Arqit has focused on commercialising quantum-safe and encryption technologies for telecom and critical infrastructure. Product and partnership news on Dec 3, 2025, Jan 22, 2026, Feb 19, 2026, and Feb 24, 2026 all saw positive moves between 1.56% and 7.11%. The current survey-based AI sovereignty announcement at MWC Barcelona 2026 reinforces Arqit’s narrative around secure AI and data-in-motion protection within networks.
Regulatory & Risk Context
An active Form F-3/A shelf, amended on Jan 23, 2026, allows Arqit to offer securities on a delayed or continuous basis and modifies the amount of unsold securities previously registered under Rule 415(a)(6). The shelf is effective with 0 recorded usage in the provided context.
Market Pulse Summary
This announcement highlights quantified demand for AI-enabled network safety constrained by data sovereignty and privacy, with 62% of respondents citing these as the biggest brake on public-cloud AI projects. It reinforces Arqit’s focus on protecting data in motion and delivering confidential computing–aligned solutions. In context, recent partnerships and product launches have produced positive single-digit moves, while an effective Form F-3/A shelf and prior class action settlements remain background considerations for investors.
Key Terms
data sovereignty regulatory
public cloud technical
confidential computing technical
data in transit technical
AI-generated analysis. Not financial advice.
New survey findings to be unveiled at MWC Barcelona 2026 show sovereignty and privacy risks are now the top barriers to AI adoption for network protection
LONDON, Feb. 26, 2026 (GLOBE NEWSWIRE) -- Data sovereignty is fast becoming make or break for AI-driven network safety projects. Yet new survey data shows that one in six organisations cannot rely on access to facilities with guaranteed data sovereignty, while data sovereignty and privacy risks are cited as the leading factor slowing AI projects in the public cloud. These are the findings of research sponsored by Arqit (Nasdaq: ARQQ, ARQQW) and Intel that are set to be unveiled at MWC Barcelona 2026.
As operators and enterprises push AI deeper into network operations, security teams are being asked to both move faster against escalating threats and ensure sensitive data remains under sovereign control. The latter is becoming more challenging as AI pipelines span public cloud, private infrastructure and edge locations. The result is a growing gap between ambition and practical execution.
The research which included a survey of Mobile World Live (MWL) readers found that data sovereignty has now become a project gating issue.
Key findings include:
62% cite data sovereignty and privacy risks as the biggest factor slowing AI projects when using a public cloud.69% say leveraging AI for network safety is urgent or very important, yet60% are still testing AI for network security or have not deployed it.80% expect to use confidential computing to achieve data sovereignty in cloud or edge locations in the next 12 months, including41% planning deployments across both cloud and edge.16% say they have no access to facilities with guaranteed data sovereignty, and only8% say they have guaranteed sovereignty at the edge.- Delays to AI transformation are already being felt as operational pain, with impacts on operational efficiency (
53% ), competitive advantage (48% ) and customer experience (45% ).
These findings come at a moment when AI and automation are becoming central to the connectivity industry’s roadmap. AI can help defenders detect anomalies and harden networks at scale, but it also increases the volume, sensitivity and movement of data. Training and operating models often requires sharing telemetry, logs and security signals between various stakeholders and platforms, making sovereignty constraints harder to ignore.
“AI is quickly becoming part of the network security stack, but the data feeding those systems is among the most sensitive that operators and critical infrastructure providers hold,” says Andy Leaver, CEO of Arqit. “This research with MWL shows sovereignty is now a make-or-break requirement, with the majority of teams citing sovereignty and privacy risks as the biggest brake on AI projects in the public cloud.
“At the same time, one in six organisations tell us they cannot guarantee sovereign facilities at all, and only
Arqit’s work with telecoms and network operators focuses on protecting data in motion across complex, distributed environments. At MWC 2026, Arqit is demonstrating how operators can move faster on network security without losing control of sensitive data as AI workflows expand across public cloud, private infrastructure and edge locations. On Stand 7C11 in Hall 7 in the UK Pavilion, Arqit and Intel will showcase how they are working together to help organisations benefit safely from AI-assisted network safety, and provide genuine, end-to-end sovereignty for enterprise customers.
©Intel, the Intel logo and other Intel marks are trademarks of Intel Corporation or its subsidiaries.
About Arqit
Arqit Quantum Inc. (Nasdaq: ARQQ, ARQQW) secures the world’s most critical data with quantum-safe encryption software. Simple, scalable, and compliant, its products integrate with existing infrastructure, and requires no rip and replace of hardware.
Arqit provides a complete “Detect, Protect, Comply” solution for governments and enterprises that detects and inventories cryptographic assets, protects data, ensures compliance, and safeguards transition to the post-quantum era.
Arqit’s primary product offerings are Encryption Intelligence and NetworkSecure™. Encryption Intelligence detects cryptographic exposure, identifies vulnerabilities, and maps dependencies. NetworkSecure™ protects data in transit with provably secure post-quantum cryptography and contributes to establishment of confidential compute environments for complete data sovereignty.
Arqit is an IDC Innovator for Post-Quantum Cryptography (2024) and a multi-award-winner in quantum-safe security. For more information, visit www.arqitgroup.com
Media relations enquiries:
Arqit: pr@arqit.uk
Investor relations enquiries:
Arqit: investorrelations@arqit.uk
Caution About Forward-Looking Statements
This communication includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be forward-looking statements. These forward-looking statements are based on Arqit’s expectations and beliefs concerning future events and involve risks and uncertainties that may cause actual results to differ materially from current expectations. These factors are difficult to predict accurately and may be beyond Arqit’s control. Forward-looking statements in this communication or elsewhere speak only as of the date made. New uncertainties and risks arise from time to time, and it is impossible for Arqit to predict these events or how they may affect it. Except as required by law, Arqit does not have any duty to, and does not intend to, update or revise the forward-looking statements in this communication or elsewhere after the date this communication is issued. In light of these risks and uncertainties, investors should keep in mind that results, events or developments discussed in any forward-looking statement made in this communication may not occur. Uncertainties and risk factors that could affect Arqit’s future performance and cause results to differ from the forward-looking statements in this release include, but are not limited to: (i) the outcome of any legal proceedings that may be instituted against Arqit, (ii) the ability to maintain the listing of Arqit’s securities on a national securities exchange, (iii) changes in the competitive and regulated industries in which Arqit operates, variations in operating performance across competitors and changes in laws and regulations affecting Arqit’s business, (iv) the ability to implement business plans, forecasts, and other expectations, and identify and realise additional opportunities, (v) the potential inability of Arqit to successfully deliver its operational technology, (vi) the risk of interruption or failure of Arqit’s information technology and communications system, (vii) the enforceability of Arqit’s intellectual property, (viii) market and other conditions, and (ix) other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in Arqit’s annual report on Form 20-F (the “Form 20-F”), filed with the U.S. Securities and Exchange Commission (the “SEC”) on 9 December 2025 and in subsequent filings with the SEC. While the list of factors discussed above and in the Form 20-F and other SEC filings are considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realisation of forward-looking statements.
FAQ
What did Arqit announce about data sovereignty in the Feb 26, 2026 survey (ARQQ)?
How urgent is AI adoption for network safety according to Arqit's Feb 26, 2026 findings (ARQQ)?
What proportion plan to use confidential computing within 12 months in Arqit's Feb 26, 2026 survey (ARQQ)?
How are AI deployment delays affecting operations per Arqit's Feb 26, 2026 survey (ARQQ)?
Where and when will Arqit unveil the Feb 26, 2026 survey findings (ARQQ)?
What does the survey say about access to sovereign edge environments in Feb 26, 2026 findings (ARQQ)?
