Sovereign and trustworthy data sharing is essential for tackling local and regional challenges and promoting economic development in European communities. Federated data sharing, supported by the emerging technical, business, and governance frameworks of Common European Data Spaces, enables collaboration among diverse stakeholders. The willingness to participate depends on clear value propositions aligned with stakeholders’ objectives, with private sector orchestration proving effective in well-defined initiatives. Progress requires translating principles like sovereignty into practice, addressing incentives and barriers, and balancing market demand and supply for successful data cooperation.