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As digital transformation accelerates across industries, the need for robust data protection and privacy measures has become more urgent than ever. In Belgium, this has led to a significant increase in demand for Sovereign Cloud solutions—cloud environments where data is stored, managed, and processed within the country’s borders, ensuring compliance with local laws and protecting data from foreign interference.
In a previous blogpost, we already explained what a sovereign cloud exactly is and what its importance means. Below, we further delve into the concept and explore the key reasons behind the growing interest in Sovereign Cloud in the Belgian market.
1. Compliance with GDPR and local regulations
One of the primary drivers of the demand for Sovereign Cloud in Belgium is the need for compliance with the General Data Protection Regulation (GDPR) and other local data protection laws. The GDPR, which governs the processing of personal data across the European Union, imposes strict requirements on how data is collected, stored, and transferred. Failure to comply can result in hefty fines and reputational damage.
Belgian businesses are increasingly turning to Sovereign Cloud solutions to ensure that their data remains within the country’s borders, under the jurisdiction of Belgian and EU laws. This eliminates the legal complexities associated with cross-border data transfers and reduces the risk of non-compliance with GDPR. According to a 2022 report by the European Data Protection Board (EDPB), there has been a marked increase in enforcement actions related to data transfers outside the EU, underscoring the importance of keeping data local .
2. Protecting data from foreign government access
Another critical factor driving the demand for Sovereign Cloud in Belgium is the need to protect data from foreign government access. The U.S. CLOUD Act, for instance, allows American authorities to access data stored by U.S.-based companies, even if that data is located outside the United States. This has raised significant concerns among Belgian businesses that handle sensitive information, such as financial institutions and healthcare providers.
By adopting a Sovereign Cloud solution, Belgian companies can ensure that their data is stored exclusively within Belgian data centers, under the protection of Belgian law. This prevents foreign governments from gaining access to their data under laws like the CLOUD Act, thereby safeguarding privacy and confidentiality.
Dirk Slechten, Executive System Engineer at Easi elaborates: "In practice, most data in the cloud is stored in the data centers of hyperscalers, mostly U.S. tech giants. The EU aims to reduce this dependence and to reduce the risk of foreign access to European companies' data. Indeed, data is crucial for innovations such as artificial intelligence, in which the EU is leading the way. New European regulations therefore require companies, organizations and governments to store all sensitive, critical and confidential data exclusively within the EU from now on. Companies must adjust their cloud strategy accordingly."
3. Rising cyber security threats
The growing prevalence of cyberattacks is another key factor fueling the demand for Sovereign Cloud. According to a 2023 report by the Belgian Centre for Cybersecurity (CCB), the number of reported cyber incidents in Belgium has increased by 30% over the past two years. These incidents include data breaches, ransomware attacks, and other forms of cybercrime that can have devastating consequences for businesses.
Sovereign Cloud solutions offer enhanced security measures tailored to local requirements, providing a robust defense against cyber threats. By storing data in Belgian data centers that adhere to stringent security standards, companies can reduce their vulnerability to attacks and ensure that their data remains protected.
4. Economic benefits and supporting local providers
Beyond compliance and security, the choice of a Sovereign Cloud can also have positive economic implications. By opting for local cloud providers, Belgian businesses can support the national economy and contribute to job creation and innovation. This is particularly important in the context of economic uncertainty, where investing in local infrastructure can help bolster economic resilience.
A 2022 study by Deloitte highlighted the economic benefits of local cloud adoption, noting that it can lead to increased investment in digital infrastructure, improved productivity, and enhanced competitiveness for Belgian businesses.
5. Geopolitical considerations and strategic autonomy
Finally, geopolitical tensions and global uncertainties are prompting Belgian companies to reconsider their reliance on global cloud providers. Events such as the war in Ukraine and the COVID-19 pandemic have highlighted the risks of over-dependence on international supply chains and technology providers.
Sovereign Cloud solutions offer Belgian businesses greater control over their data and IT infrastructure, reducing the risk of disruptions caused by geopolitical events. By ensuring that data is stored and managed locally, companies can maintain strategic autonomy and safeguard their operations against external shocks.
Conclusion
The demand for Sovereign Cloud in Belgium is being driven by a combination of regulatory pressures, cybersecurity concerns, economic considerations, and geopolitical factors. For Belgian businesses, adopting a Sovereign Cloud solution is not just about compliance; it’s about ensuring the security and sovereignty of their data, supporting the local economy, and preparing for an increasingly uncertain global landscape.
As the digital landscape continues to evolve, the importance of Sovereign Cloud will only grow, making it a critical component of any forward-looking IT strategy in Belgium.
