Enterprises in France are rapidly updating their cloud strategies to support emerging AI tools while complying with stringent data sovereignty requirements, according to a new research report released by Information Services Group (ISG), a global AI-focused technology research and advisory firm.
The report highlights that the rising demand for AI capabilities, combined with France’s push to become a global AI competitor, is driving companies to innovate their IT infrastructures. This trend has attracted substantial international investments, further fueling adoption of hybrid and sovereign cloud solutions.
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The 2025 ISG Provider Lens Private/Hybrid Cloud Data Center Services report for France reveals that enterprises are investing heavily in AI-ready infrastructure to optimize operations, meet compliance standards, and enhance sustainability. Many firms now leverage high-performance data centers and sovereign cloud offerings to balance efficiency with regulatory adherence.
“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 companies are increasingly adopting AIOps, a suite of AI-driven tools that enhances IT operations, service delivery, and incident resolution. Integrating AIOps with Generative AI (GenAI) allows data analysts to address complex queries, automate processes, and boost overall performance across extensive IT environments. Additionally, many organizations implement FinOps practices to optimize cloud spending and operational efficiency.
In the midmarket segment, firms are embracing standardized, automated services enhanced with AIOps. Providers collaborate with regional data hosts to develop tailored solutions that ensure security, governance, and compliance, helping enterprises navigate diverse operational challenges.
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The report also notes that private cloud hosting services now integrate GenAI capabilities, enabling secure, localized AI development while maintaining data sovereignty. French companies are prioritizing AI-capable, high-performance data centers, with providers offering advanced features like liquid cooling and software-defined networking (SDN). France’s nuclear energy supply further supports 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.”
Other notable trends include growing GPU-as-a-service investments and expanded demand for ETL pipelines to support AI and large language model deployments. The report evaluates 54 providers across five categories, recognizing leaders such as Orange Business, Kyndryl, Sopra Steria, Accenture, Capgemini, and Wipro, while highlighting rising stars Constellation and OPCORE.
In customer experience, Persistent Systems emerged as the global ISG CX Star Performer for 2025, achieving the highest satisfaction scores in the ISG Voice of the Customer survey.
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