Data sovereignty refers to 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 may access it.
In legal terms, data sovereignty is subject to the data protection requirements of the country in which 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, grants its authorities extensive access to data processed in the United States through the CLOUD Act. You can read here why GDPR and the CLOUD Act are incompatible.
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. Companies must therefore ensure that data sovereignty is maintained by establishing clear agreements with service providers and implementing measures such as encryption to protect data.
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, stipulates that data must remain in the country of origin. Some countries enact corresponding laws to protect privacy or to secure geopolitical advantages.
Companies should implement various measures to secure sovereignty over their data. Pseudonymization and encryption are important techniques for protecting data from unauthorized access. Additionally, data availability is usually business-critical for companies, which is why systems must be resilient to enable rapid data recovery. Companies are also well advised to introduce monitoring processes, as all protective measures must be continuously evaluated and improved.
Initiatives such as Gaia-X (a project supported by representatives from business, science, and administration from Germany and France together with other primarily European partners) aim to create a secure European data infrastructure that complies with data protection. Gaia-X seeks to represent an alternative to cloud providers outside Europe and ensure that data remains protected in Europe.
