Data Sovereignty: Implications for UK Public Sector
For any business leader, striking the delicate balance between leveraging the benefits of cloud computing and the seamless movement of data across borders while also sticking to relevant data protection laws and regulations is critical.
As data becomes increasingly important to businesses, governance over how it is stored, processed, and transferred has risen to the top of the agenda. Therefore, understanding what data sovereignty entails and its implications is crucial for any organization hoping to navigate the complex landscape of global data successfully while remaining compliant with data residency legislation.
What is Data Sovereignty?
Data sovereignty refers to the principle that data is subject to the laws and governance structures of the country in which it is collected or stored.
For UK-based entities, this means compliance with regulations such as the General Data Protection Regulation (GDPR) and The Data Protection Act of 2018, which mandate stringent requirements for the protection and privacy of personal data.
Compliance regulations ensure companies stick to the rules and help to foster customer trust, building the reputation and credibility of entities operating within the UK and beyond.
Broader, Political Dynamics
The choice of data storage location can have far-reaching consequences for security, performance, and accessibility. While cloud computing offers the scalability and flexibility that businesses have come to depend on, concerns over data residency and jurisdictional issues highlight the importance of choosing providers with robust data sovereignty measures. Moreover, data sovereignty cannot be viewed in isolation. It intersects with broader geopolitical dynamics, particularly concerning Brexit and the UK's departure from the European Union.
As the UK navigates its course as an independent country, questions surrounding data transfers between the UK and the EU were inevitable. The EU's adequacy decision, which recognizes the UK's data protection framework as good enough, has provided a degree of assurance for cross-border data flows, but only until 27 June 2025. The European Commission will then decide whether or not to extend the adequacy decisions for the UK for up to a maximum of another four years.
Vigilance is Key
These ongoing negotiations and the possibility of needing more adequacy to extend means that ongoing vigilance and adaptation from UK-based businesses are non-negotiable.
In addition to regulatory and geopolitical considerations, data sovereignty impacts cybersecurity strategies. The decentralized nature of data storage and processing introduces myriad vulnerabilities, making companies more vulnerable to data breaches, cyberattacks, and unauthorized access.
A Culture of Data Responsibility
Data sovereignty has implications for data governance and stewardship within businesses, too. Establishing clear policies and procedures that govern how data is collected, used, shared, and stored is essential for ensuring compliance and upholding ethical standards.
Also, by fostering a culture of data responsibility and accountability, businesses can mitigate the risk of misusing data and boost transparency and trust with stakeholders.
To successfully address all these challenges and complexities, UK-based businesses must adopt a holistic approach to data sovereignty that considers all the legal, technical, and organizational dimensions.
A Holistic, Proactive Approach
This means conducting comprehensive risk assessments, implementing robust security measures, and encouraging a culture of compliance and accountability. Moreover, collaboration with legal experts, cybersecurity professionals, and regulatory authorities is critical for navigating the evolving landscape of data sovereignty and safeguarding the interests of businesses and their stakeholders.
Next, businesses should invest in technologies such as encryption, blockchain, and secure multiparty computation, as these ensure data sovereignty by enabling safe and transparent data transactions while preserving privacy and integrity. Adopting a proactive approach to cybersecurity, comprised of robust encryption, emerging technologies, access controls, and incident response protocols, is essential for safeguarding data sovereignty and mitigating risk.
Heather Cover-Kus
Heather is Head of Central Government Programme at techUK, working to represent the supplier community of tech products and services to Central Government.
Ellie Huckle
Ellie joined techUK in March 2018 as a Programme Assistant to the Public Sector team and now works as a Programme Manager for the Central Government Programme.
Annie Collings
Annie joined techUK as the Programme Manager for Cyber Security and Central Government in September 2023.
Austin Earl
Austin joined techUK’s Central Government team in March 2024 to launch a workstream within education and edtech.
Ella Gago-Brookes
Ella joined techUK in November 2023 as a Markets Team Assistant, supporting the Justice and Emergency Services, Central Government and Financial Services Programmes.