Data sovereignty: not just an issue for governments

Date:
Mon, 05 Jan 2026 09:46:04 +0000

Description:
Data sovereignty is a major concern not just for governments but for organizations across sectors.

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As organizations digitally transform and as cloud computing takes hold, everyday processes and services are becoming digitalized. The volume of data generated, shared and stored is surging not just domestically but also
across regions and borders.

As a result, data sovereignty, the concept thatdata is subject to the laws
and governance structures of the country where it is collected or stored, is not just a critical factor for citizens and governments but rather a major concern.

Current geopolitical tensions and the scope for data to be compromised or intentionally disclosed is fueling these concerns.

But its not just governments feeling anxious about data sovereignty, organizations across sectors including transportation, healthcare, education, utilities and private enterprise are uneasy about the potential impact on their organization of their data falling into foreign jurisdiction.

A report commissioned earlier this year by OVHcloud found that over three quarters (77%) of IT decision makers in large UK organizationsregard data sovereignty as more important now than it was three years ago. Whats at
stake?

Organizations must comply with local data protection laws such as GDPR in the EU (and UK) and the California Consumer Privacy Act (CCPA) in the US. The consequences of non-compliance with local data jurisdiction include financial penaltiesfrom regulators and potentiallegal action and compensation
claimsfrom affected individuals. It can also lead to reputational damageand erosion of customer trust.

But aside from the potential image on company reputation and hefty fines
there are other risks too. City transportation systems, hospitals, schools, businesses both large and small and administrative services rely on servers that are often located outside of their respective countries. If access to these servers was suddenly denied, individuals, communities, businesses and indeed entire economies could be left without critical services and face dire consequences.

While these scenarios may sound extreme, the risks to companies and organizations are real. As our economies and public services continue to digitize, so too does our dependency on technologies that are most often controlled by non-European entities. It begs the question, who controls the
IT infrastructures that keep our economies running and democracies stable?
And how can we mitigate the risks? Making digital autonomy top of the agenda

To avoid any risk of falling foul of foreign data protection laws, many European organizations are looking specifically to sovereign cloud offerings, including cloud infrastructure, collaborative tools, networks, or critical software.

A report by IDC last year found that 84% of organizations across Europe were either currently using sovereign cloud solutions or planned to do so in the next 12 months. The top three drivers were found to be enhanced cybersecurity , expanded cloud use (to support greater remote work) and compliance and industry regulations.

The move to sovereign cloud solutions is entirely logical; by choosing a European provider, companies and organizations are guaranteed a local legal framework and alignment with shared principles - particularly in terms of privacy , a value upheld by EU member states through the General Data Protection Regulation (GDPR).

Strengthening GDPR awareness and turning it into a pillar for operational governance would help push the EU towards digital autonomy. Many
organizations today continue to regard GDPR compliance as a burdensome administrative box-ticking exercise. In reality, it is a genuine tool that
can help protect European citizens from the uncontrolled exploitation of
their data.

When selecting sovereign clouds, European and UK organizations should take care to ensure their chosen cloud provider is obliged exclusively to meet EU legislations or they could still find themselves subject to foreign jurisdiction. For example, Amazon Web Services (AWS) plans to launch its AWS European Sovereign Cloud offering by the end of the year.

While AWS will host its data centers in Europe and comply with EU data laws, as a US player, the company is still subject to the U.S Cloud Act. This law allows American authorities to demand access to data hosted by any U.S. company, regardless of where it is stored. Legally therefore, AWS could be compelled to provide such access to the U.S. government, despite pledging to offer a sovereign cloud service. The path ahead: collaboration and diligence

As European and UK organizations individually consider their technology platforms and partners and develop strategies to protect their data sovereignty, they must also consider wider EU digital sovereignty initiatives and industry groups like Department for Science, Innovation and Technology (DSIT) in the UK.

Gaia X is an EUframework and ecosystemthat connects existing European cloud and data service providers. Its aim is to create afederated, secure, and sovereign data infrastructurefor Europe. The DSIT is a UK body that works to build domestic infrastructure to support a sovereign digital economy.

These important initiatives will only succeed if they are widely adopted by all those concerned about digital sovereignty. Today, given the risks for enterprises across sectors, this means not only local authorities and governments but all businesses and organizations, public and private, that work in the digital economy and depend upon shared data.

Check out our feature on the best data recovery services .



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Link to news story: https://www.techradar.com/pro/data-sovereignty-not-just-an-issue-for-governmen ts


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