Kyndryl (NYSE: KD) announced an expansion of its sovereignty solutioning through new capabilities and services with Microsoft, combining Kyndryl Sovereignty Solutioning with Microsoft Sovereign Cloud capabilities.

The collaboration is aimed at helping customers design, build and operate cloud architectures that align with data residency and operational requirements. The capabilities support Microsoft's sovereign cloud approach, including public cloud options and private cloud solutions using Microsoft Azure Local.

According to the companies, the joint offering is intended to help organizations address regulatory frameworks such as GDPR, DORA and NIS2, translating compliance requirements into cloud architectures that also support AI-enabled use cases.

Customers can use Kyndryl's Sovereignty Readiness Assessment to evaluate their current posture across data, operational and technical domains and develop a phased roadmap. Kyndryl will support implementation using architectures that incorporate Microsoft Sovereign Cloud capabilities, including Microsoft Azure, Microsoft 365 and Azure Local in connected and disconnected deployment models.

"By collaborating with Microsoft, we can help customers align their sovereignty goals with real-world architectures, thus balancing control, resilience and performance across hybrid and distributed environments," said Giovanni Carraro, Global Strategic Alliances Leader at Kyndryl.

"Together, we are helping organizations adopt cloud services in ways that respect their local requirements while still enabling modernization and innovation," said Ihab Foudeh, EMEA Enterprise Partner Solutions General Manager at Microsoft.

The companies noted that governments and organizations in regulated industries such as financial services are among the intended users, particularly for workloads requiring strict data residency, enhanced auditability and controlled operational access within national or regional boundaries.