Data sovereignty is becoming increasingly crucial for Dutch organizations struggling with complex regulations and increasing cybersecurity risks. Without control over where and how your data is stored and processed, you run legal, operational and security risks that can threaten your business continuity. Modern technology makes it possible to regain this control and ensure compliance.
Recent developments around digital sovereignty in the Netherlands, such as the Open Cloud Alliance of seven Dutch IT companies, show that organizations are actively seeking alternatives to U.S. cloud providers. This movement toward greater data control has become not only a technical choice but also a strategic necessity.
What is data sovereignty and why is it crucial for Dutch companies?
Data sovereignty is the ability of an organization to maintain full control over digital assets, infrastructure and data, including the location and manner of data storage and processing. It goes beyond mere ownership to include the ability to independently manage digital assets according to local laws and regulations.
The concept consists of three interrelated pillars. The first pillar is security and compliance. By storing data within its own geographic region, you reduce the risk of unauthorized access and can better comply with local privacy laws, such as the AVG. Data breaches can result in significant financial penalties of up to 4 percent of global revenue.
The second pillar concerns operational resilience. Organizations with greater digital sovereignty are more resilient to disruptions in international supply chains, as was evident during the COVID-19 pandemic. They can respond faster to operational problems and better ensure business continuity.
The third pillar is economic and innovative value. Digital sovereignty stimulates local technology industries, creates jobs in the technology sector and enhances competitiveness. Organizations can develop unique digital solutions faster without depending on foreign technology or regulations.
What legal risks do you face without control over your data?
Without data control, you run the risk of non-compliance with European and Dutch laws, which can result in fines of up to 4 percent of your annual turnover under the AVG. You are also vulnerable to conflicting international legal frameworks and forced access by foreign authorities.
The invalidation of the EU-US Privacy Shield by the European Court of Justice in 2020 was a turning point that forced thousands of companies to adjust their data transfers. This widely highlighted the question of who really has control over organizational data. Companies that had their data with U.S. cloud providers suddenly had to overhaul their entire data structure.
Relevant EU legislation is becoming increasingly stringent. The European Digital Strategy includes data management and digital infrastructure initiatives within the EU. The AI Act regulates artificial intelligence with an emphasis on security and transparency, with a particular focus on high-risk AI systems. Organizations without data controls have difficulty demonstrating where their data is processed and by which AI systems.
A current example is the possible sale of Solvinity, which manages DigiD, to the American company Kyndryl. This shows how quickly critical Dutch digital infrastructure can fall into foreign hands, with all the legal uncertainties that entails.
How does lack of data sovereignty threaten your business continuity?
Loss of data control threatens your business continuity through dependence on foreign infrastructure, the risk of sudden service interruptions due to geopolitical tensions, and limited ability to respond quickly to operational problems. You are vulnerable to disruptions in international supply chains.
Technical challenges play a major role. Building independent digital infrastructure with robust cybersecurity requires significant expertise and ongoing investment. Without in-house control, you cannot guarantee that your systems will keep running during international crises or trade conflicts.
Economic risks are also significant. The cost of developing domestic technologies is high and economies of scale may be lost. Tax money flowing to foreign tech companies also means that knowledge and experience build up mainly outside the Netherlands, weakening long-term competitiveness.
The Open Cloud Alliance of seven Dutch IT companies shows how organizations can mitigate this risk. By working together and using the same technical standards, they guarantee that if one company is taken over by a non-European party, the other six will take over the work, so data remains under Dutch control.
What security risks arise from loss of data control?
Loss of data control creates increased cybersecurity risks through limited visibility into security measures, the inability to enforce your own security standards, and vulnerability to foreign surveillance or forced access. You can no longer guarantee that data is protected according to Dutch security standards.
Without your own control over the infrastructure, you can’t implement advanced security controls, with data classification to your own standards. You are dependent on your cloud provider’s security choices, which may not match your specific business risks or compliance requirements.
The risk of unauthorized access increases when data is stored outside one’s own legal jurisdiction. Foreign authorities can demand access to data under their own laws, even if this conflicts with Dutch privacy and security laws. This is especially problematic for organizations working with sensitive citizen data or trade secrets.
Data portability becomes a critical security issue. Without control over your data, you run the risk of vendor dependency (vendor lock-in), preventing you from responding quickly to security incidents by switching to more secure alternatives. ISO 27001-certified organizations have strict data security requirements that are difficult to ensure without their own control.
How do you implement effective data sovereignty in your organization?
Effective implementation of data sovereignty begins with mapping your current data flows and choosing Dutch or European cloud providers that comply with local laws and regulations. Establish technical standards that ensure data portability and avoid vendor dependency.
Start with a thorough audit of your current IT infrastructure. Identify where your data is stored, which systems have access and what legal frameworks apply. This will provide insight into what risks you currently face and what steps need to be prioritized.
Choose partnerships such as the Open Cloud Alliance, in which Dutch companies collectively provide a credible alternative to large U.S. cloud providers. This alliance uses the same technical standards, allowing data to be easily exchanged between providers and customers to easily switch providers.
Implement hybrid cloud strategies that provide secure links to on-premises environments and public clouds. This provides flexibility while maintaining control over critical data. Provide backup and disaster-recovery solutions that are entirely within Dutch jurisdiction.
How Pegamento helps with data sovereignty
We help organizations regain their data control through strategic collaboration with Dutch cloud partners such as Uniserver, part of the Open Cloud Alliance. Our approach combines proven standard building blocks into customized solutions, without costly customization, where you can get everything under one roof.
Our approach to data sovereignty includes:
- Implementation of AI-driven intelligence within Dutch data centers
- ISO 27001-certified security standards for maximum data protection
- Hybrid cloud strategies that combine compliance and flexibility
- Full data portability to avoid vendor dependency
- Agentic AI assistants acting independently within secure Dutch infrastructure
Through our partnership with Uniserver, certified as a VMware Sovereign Cloud partner, we guarantee that your data remains under Dutch control and meets the highest standards for privacy and data storage. Our human-centered technology strengthens human connections while ensuring complete control over your digital assets.
Want to know how we can help your organization with effective data sovereignty? Contact us for a no-obligation discussion about your specific situation and find out what opportunities are available.
Frequently Asked Questions
How long does it take to fully implement data sovereignty in an organization?
Implementing data sovereignty is a phased process that typically takes 6-18 months, depending on the complexity of your current IT infrastructure. Start with a thorough audit of your data flows (2-4 weeks), followed by migration of critical systems to Dutch cloud providers (3-6 months) and implementation of new security protocols. The entire transition requires careful planning to ensure business continuity.
What are the costs of switching to a Dutch cloud provider compared to U.S. alternatives?
Dutch cloud providers are often 10-30% more expensive than large U.S. providers due to smaller economies of scale, but these additional costs outweigh the risks of AVG fines (up to 4% of your annual revenue) and operational disruptions. In addition, you save on compliance costs and legal risks. Through partnerships like the Open Cloud Alliance, costs are becoming increasingly competitive.
Can I migrate incrementally to data sovereignty or should everything be transferred at once?
An incremental migration is not only possible but recommended. Start with your most critical and sensitive data, such as personal data and trade secrets, and migrate it to Dutch infrastructure first. Less critical systems can follow gradually through a hybrid cloud strategy. This approach minimizes risks and ensures a smooth transition without operational disruptions.
How do I avoid vendor lock-in with Dutch cloud providers?
Choose providers that use open standards and guarantee full data portability, such as members of the Open Cloud Alliance that use the same technical standards. Ensure contractual agreements on data export capabilities and avoid proprietary technologies. Implement containerization and cloud-native architectures that are platform-independent, so that you can easily switch between providers.
What happens to my data if my Dutch cloud provider is taken over by a foreign company?
Within the Open Cloud Alliance, agreements have been made that the other Dutch partners will take over the work if one member is taken over by a non-European party, so that your data remains under Dutch control. In addition, make sure there are contractual clauses that guarantee automatic data migration in case of ownership changes and always keep backups within Dutch jurisdiction. A good exit strategy is essential for true data sovereignty.
How do I ensure my AI systems remain compliant under the new EU AI Act?
Deploy AI systems within Dutch data centers where you have full control over data processing processes and can demonstrate where and how AI models are trained. Ensure transparent documentation of your AI workflows, implement explainable AI techniques and establish clear governance procedures. Dutch cloud providers can help with AI Act compliance through local expertise and compliance support.
