Data sovereignty

Data sovereignty describes complete control over the use, storage, and processing of data. It ensures that an organization or individual decides who has access to their data and how it may be used. The term is particularly important in the digital age, as an increasing amount of personal and business-related data is processed in IT systems and cloud services.

In practice, data sovereignty means that companies establish clear regulations to protect their data and control its use. This includes defining where and how the data is stored. Organizations often prefer to store data on national servers or internal company systems to enhance data security. When using cloud services, companies must ensure that their data rights are protected regardless of where the servers are physically located.

US laws such as the Cloud Act allow US authorities to access data from US providers, such as Microsoft or Google, under certain conditions—even if the data is stored on servers within the EU. This creates a conflict with the GDPR, which only permits the transfer of personal data to third countries under strict conditions. Companies using US cloud services must address these legal tensions and implement measures to comply with European data protection standards.

A key aspect of data sovereignty is also compliance with data protection laws such as the GDPR. These regulations stipulate that data may only be processed with consent and for clearly defined purposes. Violating these regulations can lead to legal consequences and damage the trust of customers and partners. Data sovereignty, therefore, involves not only having access to your own data but also ensuring that all legal and security requirements are met.

The issue of data sovereignty is particularly relevant in sectors where sensitive information is handled, such as the healthcare industry or government agencies. These sectors are subject to strict regulations regarding data processing. For government agencies in Germany, the protection of classified information—e.g., for official use only (VS-NfD)—plays an important role. This classification requires special technical and organizational measures to ensure the security of particularly sensitive data. Companies should define clear responsibilities and implement modern technologies such as encryption and access management to ensure data remains protected and complies with applicable security standards.

A well-thought-out strategy for ensuring data sovereignty not only enables companies to protect sensitive information but also enhances their competitiveness. Consistent control over data builds trust among customers and enables organizations to operate more efficiently and securely.