Data sovereignty refers to the control over the storage, use, and processing of one’s own data. It is also called data autonomy or data sovereignty. Thanks to this self-determination, individuals, companies, and governments have the ability to determine how and where their data is stored and who can access it.
Legal context of data sovereignty
In legal terms, data sovereignty is subject to the data protection regulations of the country where the data was generated or collected. In the European Union, the General Data Protection Regulation (GDPR) ensures this sovereignty: It stipulates that personal data must be processed securely and transparently. This is intended to prevent data from being transferred without control to countries that may apply different data protection standards. The USA, for example, should be mentioned here, which, with the CLOUD Act, grants its authorities extensive access to data processed in the United States. You can read here why GDPR and the CLOUD Act are incompatible.
Connection with data protection and cloud computing
Data sovereignty is closely linked to data protection and cloud computing. The increasing use of cloud services raises questions about data security, especially when servers are located in countries with less stringent data protection laws. Therefore, companies must ensure that data sovereignty is maintained by making clear agreements with service providers and implementing measures such as encryption to protect data.
Data sovereignty in different contexts
- Private individuals: Here, data sovereignty refers to the protection and control over personal data. Individuals should be able to decide which information they share and how it is used.
- Companies: Firms must protect the data of their customers and employees while using it efficiently. It is essential that they comply with legal requirements to avoid legal consequences.
- States: Countries want to ensure that their citizens’ data does not uncontrollably end up in other states. By doing so, they aim to maintain national security and economic advantages.
Distinction from data residency and data localization
Data residency: This refers to the geographic location where data is stored. Companies often choose specific regions to meet legal requirements. Data localization: This, on the other hand, states that data must remain in the country of origin. Some countries enact corresponding laws to protect privacy or to secure geopolitical advantages.
Technological and organizational measures
Companies should take various measures to secure sovereignty over their data. Pseudonymization and encryption are important techniques to protect data from unauthorized access. Moreover, data availability is usually critical for business, which is why systems must be resilient to quickly restore data. Companies are also well advised to introduce monitoring processes, as all protective measures must be continuously evaluated and improved.
Future developments
Initiatives such as Gaia-X (a project supported by representatives from business, science, and administration from Germany and France, together with other, predominantly European partners) aim to create a secure European data infrastructure that complies with data protection. Gaia-X aims to embody an alternative to cloud providers outside Europe and ensure that data remains protected in Europe.
