{"id":29877,"date":"2026-04-12T08:00:00","date_gmt":"2026-04-12T06:00:00","guid":{"rendered":"https:\/\/pegamento.nl\/niet-gecategoriseerd\/what-is-data-sovereignty\/"},"modified":"2026-06-04T09:38:16","modified_gmt":"2026-06-04T07:38:16","slug":"what-is-data-sovereignty","status":"publish","type":"post","link":"https:\/\/pegamento.nl\/en\/contact-center\/what-is-data-sovereignty\/","title":{"rendered":"What is data sovereignty?"},"content":{"rendered":"

In a world where data is called the new oil, there is growing concern about who actually controls our digital information. Data sovereignty is a concept gaining increasing attention from Dutch companies and governments, especially after events such as the invalidation of the EU-US Privacy Shield in 2020. This development has forced thousands of organizations to reevaluate their data transfers and highlights the importance of digital independence<\/a>. <\/p>\n

The issue of data sovereignty goes to the heart of modern business operations. From customer data to mission-critical systems, organizations must navigate a complex landscape of laws and regulations while pursuing innovation and growth. <\/p>\n

What exactly is data sovereignty?<\/h2>\n

Data sovereignty refers to the concept that digital information is subject to the laws and regulations of the country in which it is stored and processed. It means that organizations have complete control over where their data resides, who has access to it and under what legal frameworks it is managed. <\/p>\n

The concept includes three core components: geographic control over data location, legal certainty over which laws apply and operational autonomy in data management. In practice, this means that Dutch companies can choose to keep their data within national borders, making it subject to Dutch and European laws rather than foreign regulations. <\/p>\n

Data sovereignty goes beyond technical aspects. It also includes strategic considerations, such as knowledge building within the Netherlands, continuity of services and avoiding dependence on foreign technology providers. This approach is becoming increasingly relevant as Dutch companies become more aware of the risks associated with storing sensitive data with large U.S. cloud providers. <\/p>\n

Why is data sovereignty important for Dutch companies?<\/h2>\n

Data sovereignty is crucial for Dutch companies because it protects against foreign laws, reduces cybersecurity risks and ensures compliance with local regulations. It enables organizations to protect their digital assets from unwanted access by foreign authorities. <\/p>\n

A concrete example is the possible sale of Solvinity, which manages DigiD, to the American company Kyndryl. This illustrates how strategic Dutch digital infrastructure can end up in foreign hands. Seven Dutch IT companies, including KPN, Centric and Intermax, have therefore formed the Open Cloud Alliance to provide a credible alternative to U.S. cloud providers. <\/p>\n

The economic benefits are significant. Data sovereignty stimulates the local technology industry, creates jobs in the technology sector and strengthens competitiveness in the global marketplace. Organizations can develop unique digital solutions faster without depending on foreign technology. Moreover, money continues to circulate in the home economy, making investments in digital infrastructure not costs, but investments. <\/p>\n

What is the difference between data sovereignty and data privacy?<\/h2>\n

Data sovereignty focuses on jurisdiction and control over where data is stored and processed, while data privacy focuses on protecting personal information from unauthorized access and misuse. These concepts overlap but have different objectives and scopes. <\/p>\n

Data privacy is about ensuring individual rights and protecting personal data according to regulations such as the AVG. It includes aspects such as consent to data processing, the right to oblivion and transparency about how data is used. Privacy measures can be implemented regardless of where data is stored. <\/p>\n

Data sovereignty, on the other hand, concerns state power and jurisdiction. It is about which government can demand access to data and under which legal frameworks organizations operate. A company may have excellent privacy protections, but if the data is in a foreign country, it may still be subject to foreign laws, such as the U.S. CLOUD Act, which can allow U.S. authorities to access data from U.S. companies regardless of where it is stored. <\/p>\n

How does the AVG ensure data sovereignty in Europe?<\/h2>\n

The AVG (General Data Protection Regulation) strengthens European data sovereignty by setting strict rules for international data transfers and requiring organizations to demonstrate an adequate level of protection in cross-border data processing. The regulation imposes fines of up to 4 percent of global turnover for non-compliance. <\/p>\n

A major turning point was the invalidation of the EU-US Privacy Shield by the European Court of Justice in 2020. This decision made clear that U.S. surveillance regulations did not provide sufficient safeguards for European citizens, forcing thousands of companies to adjust their data transfers. The ruling widely highlighted the question of who really controls digital assets. <\/p>\n

The AVG interacts with other European initiatives, such as the European Digital Strategy, which focuses on data management, digital infrastructure and innovation within the EU. The CHIPS Act strengthens European semiconductor capabilities, while the AI Act regulates artificial intelligence with an emphasis on security and transparency, especially for high-risk AI systems. <\/p>\n

What challenges does data sovereignty pose?<\/h2>\n

Data sovereignty poses significant technical, economic and legal challenges. Technically, it requires building independent digital infrastructure with robust cybersecurity expertise and ongoing investment. Economically, the cost of domestic technologies is high and economies of scale may be lost. <\/p>\n

According to experts, however, the technical challenges are not so great. The seven companies in the Open Cloud Alliance already use largely the same open source software, and geographic distances between Dutch data centers are relatively small. The legal side is more complex because it revolves around service agreements between competing parties and contracting guaranteed speeds and cybersecurity. <\/p>\n

A practical challenge is that governments and businesses show little willingness to switch to smaller providers, for fear of disruption or because of technical complexity. IT contracts are often large and include many applications, so they are usually awarded to the largest parties. As a result, knowledge and experience mainly build up outside the Netherlands. <\/p>\n

Legally and governance-wise, organizations must navigate changing and sometimes conflicting legal and regulatory frameworks while continuing to drive innovation. This requires constant monitoring of developments and adaptation of processes. <\/p>\n

How Pegamento helps with data sovereignty<\/h2>\n

We at Pegamento understand the importance of data sovereignty for Dutch organizations. Through our partnership with Uniserver, a certified VMware Sovereign Cloud partner and member of the Open Cloud Alliance, we offer ISO 27001-certified<\/a> solutions that meet the highest requirements for data security and Dutch laws and regulations. <\/p>\n

Our approach to data sovereignty includes:<\/p>\n