today in we're not ready: "sovereignty washing" is a phrase I'm now seeing a lot more.
... a marketing practice where cloud, software, or AI vendors falsely or misleadingly market their services as "sovereign," "locally controlled," or compliant with regional data laws while retaining foreign ownership, operational control, or legal exposure. Example: https://nextcloud.com/blog/sovereignty-washing-microsoft-cloud/
(I'm not commenting on Microsoft)

nextcloud.com
Your data, their rules: Sovereignty washing at its finest - Nextcloud
Learn why Microsoft’s digital sovereignty promises don’t protect European data from US law and why its “sovereign” cloud still leaves you dependent.