By Emmanuel Sevray, VP Sales

European organizations are facing growing data sovereignty demands. Discover options, benefits, and best practices for keeping your data local.

Across Europe, organizations are rethinking how they manage their data.

The reasons for this push are multi-layered. The U.S. Government’s approach to data privacy often contrasts with Europe’s generally tighter regulations – but recent geopolitical and regulatory shifts in the U.S. (where many major cloud providers are headquartered) have renewed uncertainty around how data will be handled and where it might ultimately be processed.

As a result, governments across Europe are evaluating how they can become more digitally self-reliant – and some have already taken action. The French government announced that 2.5 million civil servants are swapping U.S. tools like Zoom and Teams for homegrown alternative, Visio; the Austrian military has ditched Microsoft Office for open-source office software; and German government officials are trialling free local software for admin tasks.

This shift has also led private businesses to ask: Where does our data live? Who controls it? And how can we keep oversight while staying flexible?

This conversation goes beyond politics to the topics of control, resilience, and choice. Companies want to reduce their data’s exposure to regulatory or operational surprises by keeping their sensitive information in Europe – and the consequences of not doing so can range from customer churn to regulatory fines that won’t go away with the excuse, “We didn’t know that was happening with our data.”

Let’s examine the importance of data sovereignty, the benefits to European organizations, and how you can achieve it.

What “sovereign cloud” actually means

Data sovereignty is the idea that data generated in a geographical area should be collected, managed, and stored according to the laws and regulations of that area – whether a country, region, or jurisdiction.

Data sovereignty needs to be achieved, rather than just applied, as it requires teams to be in constant awareness of and compliance with their local regulations. But beyond compliance, achieving data sovereignty comes with a range of benefits, all tied to effective risk management.

Pro-data sovereignty does not equal anti-hyperscaler. Large cloud providers can still play a key role in a sovereign cloud strategy (we’ll cover how shortly).

Why prioritize data sovereignty in your cloud strategy?

Compliance

A strong compliance posture builds trust. It reassures customers that their data is handled responsibly and can also make it easier to work with partners that have strict regulatory or governance requirements of their own.

Security and control

Data sovereignty keeps sensitive workloads closer to home, improving visibility into where data lives and tighter control over how it moves. When data stays within familiar legal boundaries, it’s easier to understand who can access it and under what conditions.

Cost and performance

Local data typically travels across fewer networks, and shorter distances can mean lower egress costs and more predictable performance. A tighter network perimeter also makes it easier to forecast connectivity spend and reduce the risk of unexpected charges.

Resilience and backup

Avoiding lock-in remains a priority for many organizations. In fact, the Megaport Cloud Network Report 2025 found that 62% of IT leaders rank avoiding cloud lock-in as a top concern, largely because of the resilience multicloud provides. Keeping primary and backup data within the same legal boundary helps reduce the risk of jurisdictional changes disrupting access or recovery.

The path to sovereignty: three options for European organizations

Option 1: Global hyperscalers

This approach involves using major US-based cloud providers without restricting where your data can be stored or processed. Plenty of organizations take this path for the convenience, breadth of services, and global scale this approach offers, but it comes with visibility trade-offs.

Benefits

• Access to massive scale and global infrastructure.
• Broad range of services and advanced features.
• Familiarity for teams already experienced with these providers.
• Rapid deployment and innovation cycles.

Drawbacks

• Less control over where data may ultimately be stored or governed.
• Exposure to non-European jurisdictions impacts compliance visibility.
• Greater reliance on a single global provider for risk management.
• Cross-border data movement can increase latency and costs.

Option 2: Hyperscalers within European borders

Organizations can take a middle-ground approach by using US-based cloud providers that operate European sovereign regions or entities, essentially “ringfencing” their data within the region. For teams that take this approach, options are growing; AWS, Microsoft Azure, Google Cloud, and Oracle are all prioritizing sovereign cloud solutions for their European customers.

Benefits

• Data stays in Europe for improved security, compliance, and visibility.
• Access to familiar hyperscaler services and innovations.
• Easier integration with existing global cloud ecosystems.
• Data can often be encrypted in memory, at rest, and while in transit.

Drawbacks

• Still reliant on a US-based parent company for governance.
• Some operational policies may be influenced by global corporate rules or international instability.
• Slightly less flexibility than global deployments.
• May require careful monitoring to ensure data stays in-region.

Option 3: Fully European providers

This approach prioritizes complete local control by using only European cloud providers with no US parent or international exposure. Network teams pursuing full sovereignty can use this approach for maximum compliance, resilience, and visibility.

Benefits

• Strong alignment with local regulations and compliance requirements.
• Full control over where data is stored and processed.
• Reduced risk from global political instability or regulatory changes.
• Opportunity to support local cloud ecosystems and partners.

Drawbacks

• Smaller providers may have fewer advanced services or global reach.
• May involve higher operational complexity or integration effort.
• Scaling quickly can be more challenging compared with hyperscalers.
• Teams may need to learn new platforms and workflows.

Why you shouldn’t overlook local cloud providers

If you’re seriously considering data sovereignty, it’s worth giving European cloud providers real consideration – even if you only use them for your most sensitive data alongside hyperscalers as part of a multicloud network.

Local providers have deep experience operating within European regulatory frameworks, which can ease risk management and planning. They can also offer closer regional support and competitive services that tie in well with multicloud strategies.

Trusted European providers—like Megaport partners OVHcloud, Cloud Temple, and Outscale, to name a few—prove that sovereignty doesn’t have to mean giving up rich capabilities or integration. And with services that complement both local and global cloud strategies, they’re worth evaluating alongside the hyperscalers, even if sovereignty isn’t your top priority.

Sovereignty doesn’t stop at connectivity

Data sovereignty isn’t just about where your network traffic flows.

Compute and storage layers also play a critical role. Where your virtual machines run, where databases reside, and how backup copies are stored all impact your compliance, latency, and risk management.

By keeping these layers within your preferred jurisdiction, you’ll gain full visibility and control over your workloads as well as improve both cost and performance predictability. Gaining full control over your IT stack will give you full cloud sovereignty.

Support sovereignty with Latitude.sh for your compute.

Sovereignty is about choice, not perfection

There’s no single right way to orchestrate your network for data sovereignty – requirements vary by country, industry, and risk appetite. Whether you go global, ringfenced, or entirely local, support your journey with global, vendor-neutral infrastructure providers – like Megaport for your connectivity layer and Latitude.sh for your compute layer.

The ultimate goal is to build a network that gives you options today and flexibility as your needs evolve, while protecting your organization’s digital information.