Do you know where your organization’s cloud data is stored? Is it truly secure and compliant with the European regulations? With the growing dependence on cloud computing, questions about data sovereignty have never been more critical. Recently, the Dutch domain registration foundation, SIDN, announced its decision to transfer the .nl domain and its complete ICT services to Amazon Web Service. This move raises concerns about reliance on public cloud providers and the risks associated with foreign control over national digital infrastructure.
The Cloud Landscape and Data Sovereignty Challenges
According to a report by the Netherlands Court of Audit, titled "Dutch Central Government in the Cloud – Dark Clouds Looming," the Dutch government uses 1,588 cloud services. Of these, 700 services rely on public cloud providers such as Amazon and Microsoft, while 477 operate on private cloud infrastructure hosted in government data centers (ODC) or hybrid cloud environments, making up 30% of the total. More concerning is that 411 cloud services—26%—are unaccounted for, meaning the government does not even know where they are hosted.
This lack of oversight extends beyond the Netherlands. Across European governments and enterprises, reliance on American hyperscalers such as Amazon Web Services (AWS), Google Cloud, and Microsoft Azure is widespread. The Dutch central government lacks clear strategic risk assessments for cloud services, leading to contracts that inadequately safeguard digital sovereignty, business continuity, and data protection. Alarmingly, ministries do not know whether a quarter of their cloud services are hosted on a public cloud, private cloud, or hybrid cloud.
The Economic Impact of Cloud Choices
The European Union faces a pivotal moment in balancing data sovereignty and privacy in the cloud era. With billions invested in Europe's cloud industry and US tech giants expanding across the continent, the push for a European sovereign cloud has never been stronger. A key question is how Europe can build its own cloud ecosystem—ensuring data remains local, secure, and compliant with strict EU regulations—while remaining competitive on a global scale.
The future of cloud computing in Europe presents both opportunities and risks. Without stronger investments in European sovereign cloud alternatives, enterprises may face data security vulnerabilities, loss of control over sensitive information, and even a potential brain drain of cloud and data professionals. Some European companies have already started to explore sovereign cloud solutions, recognizing the importance of keeping critical data within the EU.
What is a Public Cloud?
A public cloud is a cloud computing model in which computing resources are owned and operated by third-party providers and shared among multiple customers. The most well-known public cloud providers include AWS, Google Cloud, and Microsoft Azure. Public cloud services offer scalability, cost-effectiveness, and accessibility but come with concerns about data sovereignty, compliance, and security.
Since these providers are headquartered in the United States, they are subject to laws like the US CLOUD Act, which could allow US authorities to access data stored on their servers, even if the data resides in Europe. This is a major concern for organizations handling sensitive data, such as government agencies and enterprises operating under strict data protection laws like GDPR.
What is a Private Cloud and Hybrid Cloud?
A private cloud is a cloud infrastructure operated exclusively for a single organization. Unlike public cloud solutions, private clouds offer greater control, security, and customization. They can be hosted on-premises or by a third-party provider, but the key distinction is that the computing resources are dedicated to one organization rather than shared.
A hybrid cloud, on the other hand, combines elements of both public and private cloud models. Organizations using hybrid cloud can store sensitive data on a private cloud while leveraging the scalability and cost-effectiveness of public cloud services for less critical workloads. While this model provides flexibility, it also introduces complexity in terms of management, compliance, and security.
Is Your Private Cloud Truly Sovereign?
Not all private cloud solutions offer the same level of sovereignty. Key questions to ask include:
- Does your private cloud provider use shared physical servers, or do you have fully dedicated infrastructure?
- Is the data center located within the EU, ensuring compliance with European regulations?
- Does your provider adhere to GDPR and other relevant data protection laws?
- Can your cloud provider guarantee that your data will not be subject to foreign government access?
Many so-called "private clouds" still rely on shared resources or have infrastructure located outside the EU, which could expose organizations to data sovereignty risks. To achieve true digital sovereignty, enterprises should consider private clouds running on dedicated servers located in strictly regulated European data centers.
Ensuring Compliance with Dedicated Server Solutions
For organizations handling sensitive data, a private cloud on a dedicated server is often the best option for ensuring compliance. Dedicated servers provide full control over hardware resources, eliminating the risks associated with shared infrastructure. With dedicated servers, companies can:
- Maintain full data sovereignty by ensuring data stays within a controlled environment.
- Comply with industry regulations such as GDPR, HIPAA, and financial data protection laws.
- Reduce the risk of third-party access or data breaches.
NovoServe provides dedicated server solutions designed for enterprises that prioritize data sovereignty and compliance. Our data centers in Amsterdam, Rotterdam, and the New York area offer high-performance infrastructure with strict security and regulatory compliance standards. By hosting your private cloud on NovoServe’s dedicated servers, you gain complete control over your data while benefiting from reliable, scalable, and secure infrastructure.
The Future of Data Sovereignty in the Cloud
As European governments and enterprises grapple with the challenges of data sovereignty, the cloud landscape continues to evolve. While public cloud services may offer economic benefits, they also introduce significant risks related to compliance, security, and control. Private and hybrid cloud solutions provide alternatives, but organizations must carefully assess their cloud provider’s infrastructure, security and regulatory compliance to ensure true data sovereignty.
With increasing investments in European sovereign cloud infrastructure and stricter regulations on data protection, the shift toward sovereign cloud solutions is gaining momentum. By leveraging the private cloud solution on dedicated server, companies can enhance their security posture, maintain compliance, and ensure that their most critical data remains under their control.
