Strategic AI Investments Accelerate French Cloud Initiatives – ISG - October 13, 2025

Enterprises in France are quickly updating their cloud strategies to support new AI tools and data sovereignty requirements, according to a new research report published today by Information Services Group (ISG), a global AI-centered technology research and advisory firm.

The 2025 ISG Provider LensPrivate/Hybrid Cloud — Data Center Services report for France finds that growing enterprise investment in AI-ready infrastructure is reshaping the country’s hybrid cloud market. Companies are adopting sovereign cloud solutions and high-performance data centers to comply with regulations, optimize AI operations and become more sustainable.

Julien Escribe, partner and managing director, SEMEA, ISG

“The growing need to support AI while meeting data sovereignty requirements has forced French companies to innovate,” said Julien Escribe, partner and managing director, SEMEA, ISG. “France’s efforts to become globally competitive in AI have attracted substantial international investments in the country, amplifying this trend.”

French enterprises increasingly use AIOps, a suite of AI tools designed to improve IT operations, to enhance service delivery, the report says. These implementations are often intended to enhance knowledge searches and incident resolution enabled by GenAI. AIOps with GenAI is bolstering data analysts' productivity, empowering them to address complex requests, facilitate automation and improve performance across large-scale IT infrastructures. Many enterprises are also incorporating FinOps to optimize cloud spending and make operations more efficient.

In the midmarket segment, companies are embracing standardized, automated service models enhanced with AIOps, ISG says. With security, governance and compliance as focal points, providers are partnering with regional data hosts to build tailored solutions. This approach ensures streamlined operations and addresses diverse business challenges and requirements.

French firms are also integrating GenAI solutions within private cloud hosting services to support data sovereignty, the report says. This approach ensures privacy and keeps data local, allowing for secure custom AI development. By meeting sovereignty requirements, enterprises can make advancements in AI and data protection within compliant managed hosting environments.

French enterprises are seeking AI-capable, high-performance data centers to maintain global competitiveness, ISG says. To meet this demand, providers offer advanced solutions including liquid cooling and SDN technologies. France's nuclear energy supplies ensure efficiency, scalability and alignment with zero-carbon objectives.

“French enterprises are prioritizing hybrid cloud integration for scalability and flexibility,” said Pedro L. Bicudo Maschio, distinguished analyst, ISG, and lead author of the report. “To support these goals, providers are delivering tailored solutions based on GenAI and advanced compliance measures.”

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