What is Data Sovereignty?

Data sovereignty is the principle that data is subject to the laws and governance structures of the country or region where it is collected, stored, or processed. It means that the jurisdiction where the data originates has the authority to regulate how that data is handled, used, and accessed. This concept is particularly relevant as hybrid cloud infrastructure, Software-as-a-Service (SaaS) and cloud storage and back-up services have dramatically increased in popularity in recent years.

For any business or organisation, striking the delicate balance between leveraging the benefits of cloud computing and the seamless movement of data across borders, while also sticking to relevant data protection laws and regulations is critical. As data becomes increasingly important, governance over how it is stored, processed, and transferred has risen to the top of the agenda for many industry sectors.

UK data sovereignty is governed by UK General Data Protection Regulation (GDPR) and the Data Protection Act 2018, as well as newer legislation such as the National Security and Investment Act 2021 - that allows the UK government to review and intervene in business transactions, particularly those involving data and technology, that could impact national security. Additionally, the Data (Use and Access) Act 2025 updates data protection rules, making it easier for UK businesses to protect personal information while fostering innovation. These laws ensure that data located within the geographical boundaries of the UK remains subject to UK jurisdiction, meaning it is protected by UK laws, and are not subject to foreign laws or access.

The Challenges

The choice of data storage location can have far-reaching consequences for security, performance, and accessibility. On-premise solutions can be space-consuming and costly, and while cloud computing offers the scalability and flexibility that businesses have come to depend on, concerns over data residency and jurisdictional issues highlight the importance of choosing providers with robust data sovereignty measures. Moreover, data sovereignty cannot be viewed in isolation - it intersects with broader geopolitical dynamics, particularly concerning Brexit and the UK's departure from the European Union. The EU's adequacy decision, which recognises the UK's data protection framework as good enough, has provided a degree of assurance for cross-border data flows, but only until December 2025, when the European Commission will then decide whether or not to extend the adequacy decisions for the UK for up to a maximum of another four years. Furthermore, the UK has a vested interest in ensuring its institutions and businesses are not overly reliant on cloud providers and network infrastructure that operate under foreign jurisdictions. If a geopolitical crisis or trade dispute arises, access to vital data and network operations could be compromised.

Data sovereignty also impacts many cybersecurity strategies. The decentralised nature of cloud data storage and processing introduces many vulnerabilities, making businesses and organisations more vulnerable to data breaches, cyberattacks, and unauthorised access. For example - if UK data is transmitted over international networks with weak security protocols, it becomes an easy target for cyberattacks, surveillance, and exploitation.

Additionally, many countries have surveillance laws that grant governments broad access to data moving through their networks. The US CLOUD Act, for example, allows American authorities to request access to data stored by US-based companies, regardless of its physical location. The world’s largest cloud providers, - Amazon Web Services (AWS), Microsoft Azure and Google Cloud - all operate under US laws, so UK data stored in these networks is subject to foreign jurisdiction. By keeping data within UK jurisdiction and ensuring it is transmitted exclusively via secure UK-based networks, businesses can better comply with UK data protection laws such as GDPR and protect against unwarranted external access.

Scan Sovereign Cloud Services

Sovereign Cloud services are computing environments that ensures data is stored, processed and managed entirely within a specific country or legal jurisdiction, and are essential for organisations in regulated industries which must comply with strict requirements. Scan’s end-to-end service provides all of the necessary expertise to design, build, deploy and sustain large-scale infrastructure alongside the supporting functions to assist with commercial financing, multi-national logistics and making power reservations at suitable locations for large-scale workflows such as AI.

Migrating to a Sovereign Cloud doesn’t have to be complex, especially when you partner with Scan. Our expert team can help assess your current infrastructure, identify compliance requirements, and deliver a secure, efficient migration plan tailored to your organisation. The migration plan includes assessment and readiness check, custom architecture and design, and secure data migration followed by optimisation and ongoing support. We operate our own datacentre located in the north of England, and partner with a number of other UK-based providers.