{"id":11849,"date":"2025-05-07T18:37:08","date_gmt":"2025-05-07T17:37:08","guid":{"rendered":"https:\/\/mspglobal.com\/blog\/?p=11849"},"modified":"2025-06-17T12:04:18","modified_gmt":"2025-06-17T11:04:18","slug":"data-sovereignty-requirements-for-msps","status":"publish","type":"post","link":"https:\/\/mspglobal.com\/blog\/data-sovereignty-requirements-for-msps\/","title":{"rendered":"How MSPs Can Get Ahead of Changing Data Sovereignty Requirements"},"content":{"rendered":"\n<p>Just when you thought AI had sucked all the air out of the room, <strong>data sovereignty<\/strong> is a growing concern for businesses around the world\u2014and <strong>the MSPs who serve them<\/strong>. So, what is data sovereignty, why is it suddenly so important, and how can MSPs act to meet their customers\u2019 evolving needs?<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size cfs-article-heading\" id=\"h-data-sovereignty-defined\" style=\"font-style:normal;font-weight:600;line-height:1.3\">Data Sovereignty Defined<\/h2>\n\n\n\n<p>The concept of data sovereignty is that digital data is subject to the laws and governance of the country in which it is collected, processed, or stored. In other words, if data is stored on servers in a particular country, it must comply with that country\u2019s data protection and privacy regulations\u2014even if the company handling the data is based elsewhere. It\u2019s a complex topic that\u2019s just got a whole lot more complicated\u2026 and a whole lot more important.<\/p>\n\n\n\n<p>Data sovereignty can also refer more broadly to the ownership and control of data.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size cfs-article-heading\" id=\"h-why-is-data-sovereignty-a-hot-topic\" style=\"font-style:normal;font-weight:600;line-height:1.3\">Why is Data Sovereignty a Hot Topic?<\/h2>\n\n\n\n<p>Data sovereignty has slowly grown as a search term since 2013\u2014and then in 2025 it skyrocketed. The increased interest is a direct result of policy changes introduced and suggested by US President Donald Trump.&nbsp;&nbsp;<\/p>\n\n\n\n<p>The Trump administration\u2019s approach: deregulation, increased executive control over government agencies, and diminished independence of key privacy oversight bodies.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Its actions have caused uncertainty around privacy protections for both US businesses and their international partners. Across the world, this has led governments and other organizations to express concern about the security of data transfers to the US.&nbsp;<\/p>\n\n\n\n<p>Businesses are concerned\u2014and rightly so\u2014 with the <strong>security of their data<\/strong> and the need to <strong>comply with the laws of the countries in which they operate<\/strong>. They also know they must protect the data\u2014and trust\u2014of their valued customers. Fail to do that, and you can kiss your profits and reputation goodbye!<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size cfs-article-heading\" id=\"h-businesses-care-about-data-sovereignty\" style=\"font-style:normal;font-weight:600;line-height:1.3\">Businesses care about data sovereignty<\/h2>\n\n\n\n<p>Research from OVHcloud found that more than 75% of UK organizations see data sovereignty as an increasingly important aspect of their data management approach, with most considering it \u201ccrucial\u201d.&nbsp;<\/p>\n\n\n\n<p>&nbsp;\u201cHaving a robust data sovereignty strategy means that you know who controls your data, where it is, who has access to it, and which regulations it\u2019s subject to,\u201d said <a href=\"https:\/\/www.linkedin.com\/in\/matthew-tebay-b6000114\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Matt Tebay<\/a>, Multi-Cloud Evangelist at OVHcloud.&nbsp;<\/p>\n\n\n\n<p>\u201cOrganizations are increasingly realising that it\u2019s not simply a cost and regulatory burden, but can build better customer trust, enhance governance and provide a layer of security and transparency to customers.\u201d&nbsp;&nbsp;<\/p>\n\n\n\n<p>In this environment of uncertainty, and with change happening at breakneck speed, MSPs must integrate data sovereignty solutions to meet their clients\u2019 requirements. They must also ensure their services comply with relevant rules and regulations across countries and regions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size cfs-article-heading\" id=\"h-increased-data-sovereignty-legislation\" style=\"font-style:normal;font-weight:600;line-height:1.3\">Increased data sovereignty legislation<\/h2>\n\n\n\n<p>The European Union GDPR (General Data Protection Regulation, for those who have been living under a regulatory rock) may be the most famous data protection law, but it is far from the only one.&nbsp;&nbsp;<\/p>\n\n\n\n<p>The new German Privacy Act (BDSG-new, or BDSG-neu if you want to sound like a local) restricts data transfers to third countries and businesses that process citizens\u2019 personal information must meet data protection requirements, even if located outside Germany\u2019s borders.&nbsp;<\/p>\n\n\n\n<p>France has introduced its SecNumCloud certification scheme, and new legislation is expected. The situation in the US is\u2014you guessed it\u2014 complex, with California implementing its own data legislation in the absence of stricter Federal legislation.&nbsp;&nbsp;<\/p>\n\n\n\n<p>\u201cThis isn\u2019t solely a Western trend, either,\u201d states Nick Law, Head of Cloud Migration Factory at Atos.&nbsp; \u201cIn China, for example, public sector institutions must use a Chinese cloud provider to store their data. Vietnam, Russia and Indonesia all require their citizens\u2019 data to be stored on servers within the country.\u201d &nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size cfs-article-heading\" id=\"h-hyperscalers-understand-the-need-for-data-sovereignty\" style=\"font-style:normal;font-weight:600;line-height:1.3\">Hyperscalers understand the need for data sovereignty<\/h2>\n\n\n\n<p>The global heavy hitters clearly understand the importance of data sovereignty, especially to European organizations that often face stricter levels of data regulation.&nbsp;<\/p>\n\n\n\n<p>AWS European Sovereign Cloud is marketed as \u201ca new, independent cloud for Europe, designed to help public sector organizations and customers in highly regulated industries meet their evolving sovereignty needs\u201d. It claims to provide \u201cthe capability to meet stringent operational autonomy and data residency requirements\u201d and is<a href=\"https:\/\/aws.amazon.com\/blogs\/security\/aws-plans-to-invest-e7-8b-into-the-aws-european-sovereign-cloud-set-to-launch-by-the-end-of-2025\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"> set to launch<\/a> in Germany by the end of 2025.&nbsp;<\/p>\n\n\n\n<p>Microsoft addresses concerns about European data sovereignty with its\u202f<a href=\"https:\/\/www.microsoft.com\/en-us\/trust-center\/privacy\/european-data-boundary-eudb?msockid=3cf3cb184ba5674a3504de074a88665c\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">EU Data Boundary for the Microsoft Cloud<\/a>. This solution allows its European commercial and public sector customers to store and process their customer data for Microsoft core cloud services\u202fwithin the EU and EFTA regions.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Google Sovereign Cloud offers a range of functions that allow clients to maintain data residency, operational oversight, and encryption management within specific geographic regions. It states that \u201cthese controls aim to ensure compliance with local data regulations and offer increased security for sensitive information\u201d.&nbsp;<\/p>\n\n\n\n<p>However, the rise of AI and the vast amount of data used in training and processing have complicated the data landscape further.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size cfs-article-heading\" id=\"h-ai-will-increase-the-focus-on-data-sovereignty\" style=\"font-style:normal;font-weight:600;line-height:1.3\">AI will increase the focus on data sovereignty<\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"640\" height=\"427\" src=\"https:\/\/mspglobal.com\/blog\/wp-content\/uploads\/ai-and-data.jpg\" alt=\"AI and data protection\" class=\"wp-image-11852\"\/><figcaption class=\"wp-element-caption\">Photo by Robb Miller on <a href=\"https:\/\/unsplash.com\/photos\/woman-in-black-dress-statue-SARXNUw9ozg?utm_content=creditCopyText&amp;utm_medium=referral&amp;utm_source=unsplash\">Unsplash<\/a><\/figcaption><\/figure>\n\n\n\n<p>Research from Gartner found that by 2027, 70% of enterprises expect digital sovereignty to be a top factor when selecting public-cloud GenAI services.&nbsp;<\/p>\n\n\n\n<p>\u201cSpecialty cloud providers will become an important consideration for many enterprise cloud architectures as organizations extend their cloud operations to cover diverse locations and use cases,\u201d said\u202f<a href=\"https:\/\/www.gartner.com\/en\/experts\/sid-nag\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Sid Nag<\/a>, Vice President Analyst at Gartner.&nbsp;&nbsp;<\/p>\n\n\n\n<p>\u201cDigital sovereignty will drive the need to include cloud providers that can meet the evolving and unique requirements of sovereign operations, no matter the region they operate in.\u201d&nbsp;<\/p>\n\n\n\n<p>The MSP GLOBAL community is brilliant at working together to deliver cutting-edge digital transformation so how can it react to a shifting data sovereignty environment that has more twists that the 5km of rollercoasters at PortAventura Park (where our 2025 event will take place \u2013 scroll down to book your free place!)<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size cfs-article-heading\" id=\"h-msps-take-action\" style=\"font-style:normal;font-weight:600;line-height:1.3\">MSPs, Take Action<\/h2>\n\n\n\n<p>Become a trusted advisor: Small- and medium-sized businesses in particular are looking for guidance on how to stay compliant. Use your understanding of your customer\u2019s specific needs to provide relevant guidance and solutions.&nbsp;<\/p>\n\n\n\n<p>Consider ESG: Data sovereignty impacts where data is processed and stored, potentially bringing local environmental and compliance regulations into play. Ensure your ESG audit trail is clear to avoid fines\u2014or worse.&nbsp;<\/p>\n\n\n\n<p>Explore the potential of AI: It may still be possible to move data within a region to optimise storage and manage costs. AI can be a powerful tool for identifying the best solution.&nbsp;<\/p>\n\n\n\n<p>Get to grips with lifecycle management: Optimizations in this area will help clients reduce costs and risk. Improved information processing, retention, and removal will reduce the scale of data sovereignty challenges.&nbsp;<\/p>\n\n\n\n<p>Keep an eye on the hyperscalers: The market-leading CSPs and other \u201cbig dogs\u201d invest heavily to ensure data sovereignty compliance, and have insight into upcoming legislation. Follow their product pipelines to get a feel for what\u2019s on the horizon in the data sovereignty space.&nbsp;<\/p>\n\n\n\n<p>Register for MSP GLOBAL: Join your peers and the leaders who drive this industry in Barcelona to get the latest business intelligence, discover the latest solutions, and connect with the partners who will help keep you ahead of the data-sovereignty curve.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Just when you thought AI had sucked all the air out of the room, data sovereignty is a growing concern for businesses around the world\u2014and the MSPs who serve them. So, what is data sovereignty, why is it suddenly so important, and how can MSPs act to meet their customers\u2019 evolving needs? Data Sovereignty Defined [&hellip;]<\/p>\n","protected":false},"author":30,"featured_media":11850,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"mark_post_sync":true,"footnotes":""},"categories":[1513],"tags":[],"class_list":["post-11849","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-guides"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.2 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>How MSPs Can Get Ahead of Changing Data Sovereignty Requirements<\/title>\n<meta name=\"description\" content=\"Discover why data sovereignty is a growing concern for MSPs and how you can stay ahead of regulations to maintain compliance and data protection.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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