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Data sovereignty: what is it?

The digital revolution has been shaped by Big Data, the IoT, and artificial intelligence, which have made data central to the concerns of business leaders everywhere. The concept of data sovereignty has therefore become a necessity.

Data sovereignty is a key issue in an ever more interconnected digital world. It refers to the authority to hold data while serving as a legal term for aspects related to digital data processing, including protection, encryption, transmission, and storage.  Organizations, whether public or private, must ensure that their data is protected and remains under their control, even when stored abroad or in cloud environments. Explore in this article the definition, challenges, and strategies for ensuring data sovereignty, based on existing legal frameworks and technologies.

a. Data sovereignty: definition

Data sovereignty fait référence au droit d’une nation ou d’une organisation à contrôler les données générées, traitées ou stockées sous sa juridiction. Cela signifie que les données sont régies par les lois du pays où elles sont stockées, même si elles sont utilisées ailleurs. La souveraineté des données est un enjeu majeur pour assurer la sécurité, la confidentialité et l'intégrité d’informations stratégiques.

The concept of data sovereignty has become more and more important with the rise of cloud technologies, IoT, and AI, where data is often stored in multiple countries. Events such as the mass surveillance revelations in 2013 have prompted governments to put regulations in place to protect their sensitive data, notably with the adoption of the General Data Protection Regulation (GDPR).

b. Legal and regulatory framework

Far from being a linear framework, sovereignty as we apprehend it often finds a new form of expression in the digital world. The structuring of cloud environments and the acceleration of the Big Data and AI era make it compelling to reconsider the entire concept of data sovereignty. The GDPR, adopted by the European Union, is one of the main legislative frameworks for data sovereignty. It imposes strict rules on how personal data must be collected, stored, and transferred, requiring the explicit consent of individuals and guaranteeing rights over their data.

i. National and international laws

Outside Europe, countries such as the United States and China have also introduced laws to protect their citizens' data. The Cloud Act in the United States allows authorities to access data stored by US companies, even if it is hosted abroad. However, this can raise questions about data sovereignty at the international level. Nevertheless, there is an additional mechanism, namely the Digital Markets Act (DMA), to fill the gap in standards by seeking to limit and regulate the power of large digital platforms. This regulation will be extended to GAFA and other platforms that meet the DMA criteria.

ii. Implications for businesses

For businesses, these regulations impose legal obligations to store data in specific jurisdictions. Organizations must also ensure that their cloud partners and suppliers meet the same compliance requirements to avoid penalties.

c. Three steps to ensuring data sovereignty

i. Identify critical data

The first step in ensuring data sovereignty is to identify the nature of the data, and then determine which data is critical to the organization. This includes sensitive or strategic information that requires enhanced protection.

ii. Assess risks and vulnerabilities

Companies must conduct a risk assessment related to data loss or accessibility to identify potential vulnerabilities linked to data management and storage. This includes the risks of hacking, unauthorized access, or data loss during cross-border transfers.

iii. Implement data governance policies

Assessing the effectiveness of current data management practices is particularly critical. Governance policy must be constantly reevaluated with the introduction of connected objects and AI. It is also essential to define clear data governance policies. This includes implementing access management processes, protecting sensitive data, and complying with local and international regulations.

d. Best practices for ensuring data sovereignty

1. Encryption and data protection solutions

Data has become one of the most valuable assets, but it remains vulnerable to cyberattacks. Data encryption  is a key method for ensuring that only authorized individuals can access sensitive information, whether in the event of hacking or cross-border transfer. AI in particular, predictive artificial intelligence (PAI), and real-time analytics play a crucial role in securing data. Today, most large companies are turning to solutions that combine AI, predictive analytics, and real-time analytics to secure data. AI in particular, predictive artificial intelligence (PAI) and real-time analysis, plays a crucial role in securing data. Today, most large companies are turning to PAI solutions that enable proactive analysis, automated threat detection, and encryption to protect sensitive data at every stage. It also helps meet international regulatory compliance requirements.

2. Access and identity management tools

Identity and access management (IAM) is essential for ensuring data sovereignty. These tools make it easy to control who can access sensitive data and make sure only authorized people can see or change it. But now, we are discovering new tools that use AI to process huge amounts of data in just a few minutes. This is transforming our approach to identity and access management, improving security and saving considerable time. The integration of AI into IAM is not limited to improving existing tools. It is a paradigm shift that enables a more proactive, adaptive, and intelligent approach to identity management.

3. Sovereign storage platforms

Sovereign storage platforms sont conçues pour héberger les données dans des juridictions spécifiques, garantissant ainsi qu'elles ne sont pas soumises à des lois étrangères qui pourraient compromettre leur sécurité ou leur confidentialité. En France, il en existerait plusieurs, ce qu’il faut retenir est qu’il va dans le même souci de sécurisation des données et de s’assurer qu’elles restent dans la zone géographique du pays vu leur niveau de sensibilité.

4. Hosting data at the national level

For French companies, storing their information in France is of paramount importance in terms of compliance with local regulations such as the GDPR and protection against foreign legislation. It also means they can maintain complete control over sensitive data, reducing the risks linked to data sovereignty.

A particularly suitable solution to this problem is the use of Edge data centers. These data centers, as we understand at UltraEdge, have a major impact on data sovereignty. Located close to urban areas, edge data centers reduce latency, improve energy efficiency by optimizing heat management, and limit dependence on central infrastructure while ensuring greater network resilience. Consult the Ultra Edge map, which lists our data centers in France.

e. User awareness and training

i. Staff training programs

Companies must invest in staff training to ensure responsible data management. A good understanding of security practices and regulatory obligations is essential to minimize the risks of non-compliance.

ii. Awareness of good data management practices

In addition to training, organizations must educate their employees on best practices for data management, particularly with regard to protecting sensitive information and implementing appropriate security solutions. At the same time, it is important to ensure that data is stored in accordance with current standards and legislation in the country.

Finally, companies must implement continuous monitoring systems to detect any breaches or attempts at unauthorized access to data using the latest tools such as AI agents. This allows them to respond quickly and limit damage in the event of a problem. Regular audits are essential to ensure that data management policies are being followed and that protection solutions remain up to date in the face of new threats and regulatory changes.