Data sovereignty is an important term in the fields of digital transformation, cybercrime and cybersecurity, and big data and smart data. It describes the principle that data is subject to the laws of the country in which it is stored. This means that anyone who owns or processes data must adhere to the rules and data protection laws of that particular state.
In a globally interconnected world, data is often stored across national borders, for instance, with international cloud services. Data sovereignty ensures that, for example, personal customer data from Germany continues to be handled in accordance with German data protection law, even if it is stored on a server in another country.
A clear example: A German company uses an American cloud provider to store customer data. Despite the physical storage abroad, the cloud provider must ensure that this data is not searched or disclosed under American law without consent – but complies with German data protection regulations.
Data sovereignty helps to maintain control over important information and strengthens the trust of businesses and customers in digital technologies and international business relationships.
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