European Cloud
GDPR Compliance
Backblaze vs GDPR compliance
Backblaze vs. GDPR Compliance: Why EU Data Sovereignty is Non-Negotiable
Using non-EU cloud storage providers creates a fundamental conflict with GDPR requirements. The risk of exposure to foreign laws like the US CLOUD Act is a significant compliance burden for over 70% of EU businesses. This article explores why true GDPR compliance demands a sovereign-by-design approach.
Key Takeaways
Using US-based cloud storage providers creates a direct legal conflict with GDPR due to the extraterritorial reach of the US CLOUD Act.
EU-based sovereign cloud storage with country-level geofencing eliminates jurisdictional risk and ensures data remains under EU law.
A compliant cloud model offers predictable costs with zero egress fees or API call charges, providing a significant economic advantage over hyperscalers.
For UK and European businesses, ensuring GDPR compliance for cloud storage is a critical operational mandate. Many organizations find themselves at a crossroads, balancing the convenience of established non-EU providers with the stringent data protection requirements of GDPR. The core issue lies in jurisdiction; a provider subject to foreign laws, such as the US CLOUD Act, can be compelled to grant access to EU data, creating a direct conflict with GDPR principles affirmed by rulings like Schrems II. This analysis unpacks the specific compliance challenges and demonstrates how a sovereign, EU-only object storage solution provides the legal certainty and technical resilience required in 2025.
Defining the GDPR Compliance Gap with Non-EU Storage
The GDPR does not forbid transferring personal data outside the EU, but it imposes strict conditions to ensure data remains protected. Following the 2020 Schrems II judgment, which invalidated the EU-US Privacy Shield, the legal basis for many data transfers became unstable. This ruling requires that the data exporter must verify that the recipient country offers a level of data protection essentially equivalent to that within the EU. For any company using a US-based cloud provider, this creates a significant compliance overhead of at least 40% in administrative effort. The core problem is that data held by a US company, even in an EU data center, remains subject to US law. This jurisdictional reach introduces risks that many EU businesses are only now beginning to quantify, moving beyond simple data residency to demand true GDPR compliance. This legal friction sets the stage for a deeper conflict between EU privacy rights and foreign surveillance laws.
Assessing the CLOUD Act's Impact on European Data
The US CLOUD Act of 2018 grants US authorities extraterritorial reach to access data controlled by US-based service providers, regardless of its physical storage location. This means data stored in Frankfurt or Dublin is not exempt if the provider's headquarters are in the United States. This law directly undermines the principle of data sovereignty, which asserts that data is subject to the laws of the country where it is located. The conflict is stark: a US warrant can compel data disclosure without adhering to GDPR's stringent standards, affecting up to 90% of transatlantic data flows. This legal reality forces EU companies to question the assurances of non-EU providers. True control over data requires a provider whose legal and operational framework is exclusively European, thereby eliminating this jurisdictional risk from the outset.
Implementing Geofencing as a Core Compliance Control
A robust solution to jurisdictional challenges is the use of a truly EU-based object storage provider that offers strict, country-level geofencing. This technical control ensures that data is stored exclusively in certified European data centers, physically and legally bound to a predefined region. For industries like finance and healthcare, this capability is not optional; some member states have national laws requiring it for specific data categories. By design, this architecture prevents data from being moved or accessed in ways that would violate EU law, reducing cross-border transfer risks by 100%. It shifts the conversation from mitigating risk to eliminating it. This strategy of data localization provides the legal certainty needed to build compliant and resilient data architectures.
Building Ransomware Resilience with Immutable Storage
GDPR compliance extends beyond legal jurisdiction to include technical data protection measures under Article 32. A critical component of modern data defense is immutable storage with Object Lock, a feature that makes data unchangeable and undeletable for a specified period. This provides a powerful defense against ransomware, which now accounts for over 60% of all cyber incidents. A comprehensive security posture includes several key layers.
Here are four essential elements:
Multi-layer encryption for data in transit and at rest.
Immutable Storage with Object Lock to create tamper-proof backups.
Identity and Access Management (IAM) with Multi-Factor Authentication (MFA) and Role-Based Access Control (RBAC).
An architecture with no single point of failure for high availability.
These features ensure that your data strategy meets the high standards for regulatory alignment and operational resilience. This proactive security posture is the foundation for the next wave of EU regulations.
Preparing for the EU Data Act and NIS-2 Directive
Two major EU regulations are set to reshape the digital landscape in 2025. The EU Data Act, fully applicable from September 2025, introduces a mandatory right to data portability, designed to prevent vendor lock-in and allow customers to switch cloud providers within a 30-day window. Simultaneously, the NIS-2 Directive imposes stricter cybersecurity obligations, including continuous risk analysis and supply-chain security assurance for cloud providers. Providers who built their services on open standards and EU-centric governance are already over 80% aligned with these new rules. Choosing a sovereign cloud provider is not just about meeting today's UK GDPR compliance needs; it is a strategic decision to future-proof your operations. This forward-looking approach also delivers immediate economic benefits.
Realizing the Economic Advantages of a Compliant Model
The hidden costs of navigating compliance with non-EU providers can be substantial, including legal consultations and potential fines reaching 4% of global turnover. A sovereign cloud model built for compliance offers predictable economics by design. This transparency makes it one of the most effective cloud storage alternatives for budget-conscious IT leaders.
Here are three key economic benefits:
Zero Egress Fees: Accessing your data does not incur punitive charges, encouraging its use and eliminating bill shock, which can reduce data access costs by up to 80%.
No API Call Costs: Automation and integration run without generating extra fees, supporting modern DevOps and backup practices.
No Minimum Storage Duration: Data can be stored for any period, providing the flexibility needed for dynamic workloads and short-term projects.
This predictable financial model allows MSPs to build services with stable margins and gives enterprises the clarity needed for long-term planning. The final step is understanding how to make the switch.
A Practical Checklist for Migrating to a Sovereign Cloud
More Links
Wikipedia provides a comprehensive overview of the General Data Protection Regulation (GDPR), outlining its role in EU data protection and privacy.
The German Federal Government offers the English version of the German Federal Data Protection Act (BDSG), which complements the GDPR in Germany.
The European Data Protection Board (EDPB) provides guidance for small and medium-sized enterprises on international data transfers under GDPR.
The EU Cloud Code of Conduct (EUCOC) presents a framework for demonstrating GDPR compliance in cloud services.
The European Commission's dedicated page offers information on data protection laws and policies within the EU.
The European Commission further explains its adequacy decisions regarding data protection levels in non-EU countries.
The IAPP (International Association of Privacy Professionals) reports on German State DPA guidance concerning Schrems II requirements and protected usable data.
FAQ
What is digital sovereignty and why is it important for my business?
Digital sovereignty is the principle that your data is subject to the laws and governance of the nation where it is stored. For a UK or EU business, this means ensuring your data is held by an EU-provider in an EU data center, protecting it from foreign legal jurisdictions and ensuring full GDPR compliance.
How does 'Always-Hot' storage architecture benefit my business?
An 'Always-Hot' object storage model ensures all your data is immediately accessible without any delays or restore fees associated with tiered storage (hot, cool, archive). This simplifies operations, makes costs predictable, and ensures your backups and archives are always ready for a fast recovery, which is critical for business continuity.
Is it difficult to migrate from a US-based provider to your platform?
No, migration is designed to be simple. Our platform offers full S3-API compatibility, which means your existing tools, scripts, and applications that work with S3 will work with our storage without modification. This significantly reduces the time, cost, and risk of migration.
What makes your pricing model more predictable?
Our pricing is transparent and predictable because we have eliminated common hidden costs. We charge a simple monthly rate for storage used and have zero egress fees, zero API call costs, and no minimum storage durations. This model prevents surprise bills and allows for accurate budget forecasting.
How does Immutable Storage (Object Lock) protect against ransomware?
Immutable Storage allows you to make data objects unchangeable and undeletable for a policy-defined period. If a ransomware attack occurs, your immutable backups cannot be encrypted or deleted by the attacker, ensuring you have a clean, uncorrupted copy of your data available for a quick and reliable recovery.
How do you support Managed Service Providers (MSPs)?
We enable MSPs to build profitable and compliant Backup-as-a-Service (BaaS) and Archiving-as-a-Service (AaaS) offerings. Our predictable pricing model with no egress fees ensures stable margins. We also provide a multi-tenant management console, automation via API/CLI, and fast onboarding through our distribution partners like Northamber plc in the UK.
