Why data sovereignty matters for Europe’s businesses
This year, the European Commission proposes to set a goal to at least triple the EU’s data center capacity within the next five to seven years, to support the growth of the region’s self-sufficient digital economy.
Concurrently, Europe’s leaders are prioritizing sovereignty to bolster confidence in Europe’s IT infrastructure amidst widespread concern over the security, governance and control of data held here.
The stark reality is that knowing precisely where any organization’s data is stored, and what country’s laws govern this, is now a matter that needs action at the most senior level in light of the uncertain economic and geopolitical global climate.
Ignoring this could have a painful impact on businesses which do not have a sound strategy in place, including fines for non-compliance, along with business disruption and damage to stakeholder trust.A sovereign European cloud for the long term
More urgency to establish Europe’s own sovereign cloud services has been spurred on by recent trade policies, notably the announcements on US tariffs. Not only have these sent shockwaves to the world’s markets, but these also highlight that the European economy is vulnerable to decisions taken outside of its jurisdiction.
There are major concerns amongst business and IT leaders that there is heavy reliance on the large cloud providers headquartered in the United States, with specific fears that Europe’s data is not safeguarded enough against foreign intervention.
US laws like the CLOUD Act, which could oblige American providers to hand over data to authorities regardless of where it is physically stored, highlight the distinct legal ambiguities around cross border data governance and security.
Although the hyperscalers are on board with finding a practical solution, Microsoft was recently reported in France to admit that it could not offer any guarantee of immunity from the CLOUD Act for data stored within EU boundaries.
And recent research in the UK found that more than half of the country’s IT leaders plan to reduce reliance on US-based providers, with 45 percent actively looking to limit exposure to US jurisdiction.
