As EU-US data transfer tensions continue to evolve, driven by legal uncertainties and heightened regulatory scrutiny, organizations are under increasing pressure to make informed decisions about where and how their analytics data is stored. The collapse of previous data transfer frameworks and the uncertain future of the current EU-U.S. Data Privacy Framework have made one thing clear: relying solely on “EU-based hosting” is no longer sufficient.
Although often marketed as a privacy safeguard, EU hosting alone does not ensure full legal protection or true data sovereignty. For organizations committed to long-term compliance, user privacy, and robust data governance, understanding the difference between data hosting and data sovereignty is more important than ever.
In this article, we’ll unpack the nuances between EU hosting and EU data sovereignty, explain why this distinction is especially relevant in light of current EU-US data transfer dynamics, and show solutions that are designed to deliver genuine sovereignty, building a foundation of trust, transparency, and compliance in a shifting legal landscape.
EU hosting is not the same as EU sovereignty: Legal risks remain
Many analytics vendors highlight their use of EU-based data centers to signal compliance with European privacy laws. However, if the services are owned or controlled by non-EU entities, particularly U.S. companies, your data may still fall under foreign jurisdiction.
Under the U.S. CLOUD Act, American authorities can legally compel U.S.-based companies to provide access to customer data, no matter where it is stored. This creates a significant compliance risk for organizations seeking to align with EU data protection standards.
To enable lawful data transfers outside the EU, many providers rely on the EU–U.S. Data Privacy Framework (DPF) or Standard Contractual Clauses (SCCs). While both mechanisms are currently valid, they remain under ongoing legal scrutiny.
The DPF, like its predecessors, Privacy Shield and Safe Harbor, could be invalidated by the Court of Justice of the EU (CJEU). If that happens, most organizations will revert to SCCs, just as they did after the Privacy Shield was struck down. Yet even SCCs come with limitations: they don’t offer full protection from U.S. government surveillance, a concern equally relevant to the DPF.
Some providers, such as Microsoft, offer both mechanisms to give customers flexibility. However, neither fully resolves the underlying legal uncertainty that comes from using cloud services under foreign ownership, even when the data itself never leaves the EU.
Data Transfers: DPF vs. SCCs – What’s the Difference?
Under the General Data Protection Regulation (GDPR), there are different ways to transfer personal data outside the EU legally. The Data Privacy Framework (DPF) is one of them — it’s an adequacy decision (Article 45), meaning the EU considers certain countries (like the U.S., under the DPF) to offer enough protection.
Another option is using Standard Contractual Clauses (SCCs), legal contracts approved by the EU Commission (Article 46). You don’t need both – just one is enough.
Some companies, like Microsoft, use both: they’re certified under the DPF and offer SCCs. Why? Because the legal landscape can change, having SCCs adds a backup layer of protection.
True data sovereignty means more than simply storing data within the EU. It requires that both the data and the organizations handling it remain entirely under the EU’s legal jurisdiction, free from foreign ownership or extraterritorial influence.
For example, even if data is physically stored in a European data center, using infrastructure operated by a non-EU company, such as a U.S.-based cloud provider, can expose that data to foreign laws like the U.S. CLOUD Act. This creates similar risks to storing the data outside the EU, as foreign authorities may still compel access, undermining EU privacy protections. To achieve real sovereignty, organizations must ensure that data stays in the EU and within infrastructure owned and managed by EU-based providers bound solely by EU law.
Compliance implications of data sovereignty
Data sovereignty isn’t just a legal formality – it’s a strategic safeguard. Under the GDPR, any transfer of personal data to a third country must not undermine the level of protection guaranteed within the EU. This means organizations must ensure that data remains shielded from unauthorized access, even when stored or processed abroad. Sovereign infrastructure plays a key role here, reducing the risk of foreign jurisdictions, including intelligence agencies, compelling access to sensitive data.
This is particularly critical in sensitive sectors like healthcare, finance, public services, and education, where user trust and legal exposure are tightly linked.
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- PIPEDA & CPPA: How the Canadian privacy laws impact your analytics [Updated]
- Everything you need to know about the New York Health Information Privacy Act (NYHIPA)
- Data privacy laws in the United States and how they affect your business [UPDATED]
What Piwik PRO and Cookie Information deliver
Piwik PRO and Cookie Information offer a privacy-focused analytics and consent management platform developed entirely under EU jurisdiction. Both tools are designed to meet GDPR requirements, but achieving true data sovereignty – where data remains inaccessible to foreign entities – depends on the underlying infrastructure.
This level of sovereignty is fully realized with the Piwik PRO Enterprise plan, which allows hosting on Elastx, a fully EU-owned provider. This ensures that both the data and the technology stack are governed solely by EU laws.
For organizations prioritizing maximum legal protection, it’s crucial to choose a solution that combines EU-based infrastructure with EU ownership. This not only addresses growing concerns around EU-US data transfers but also supports long-term compliance and regulatory certainty.
However, deploying an EU-based analytics tool alone isn’t enough. Consent management must also be handled within the EU to avoid undermining your compliance efforts. If a consent platform transmits data to the U.S. or other external jurisdictions, your data remains possibly exposed. The solution: integrate your analytics with a consent platform that is fully managed and hosted in the EU. Together, they create a unified, privacy-first marketing system that upholds user trust and data protection standards.
Headquartered in Copenhagen with data centers across the EU, Cookie Information is a trusted choice for marketers who value both compliance assurance and performance optimization.
Find out more about Piwik PRO and Cookie Information:
Benefits of EU-sovereign analytics
Adopting a truly EU-sovereign analytics solution significantly reduces the risk of legal exposure to foreign surveillance laws and strengthens compliance with global privacy regulations such as the GDPR, the California Consumer Privacy Act (CCPA), and the Brazilian General Data Protection Law (LGPD). When combined with additional safeguards, including strong data transparency, robust user consent mechanisms, and responsible data handling practices, data sovereignty becomes a cornerstone of long-term legal stability. This holistic approach not only supports regulatory compliance but also fosters user trust and enables sustainable, privacy-conscious marketing strategies.
Key benefits of an EU-sovereign analytics stack include:
- Minimizing legal risk from non-EU surveillance frameworks
- Ensuring alignment with major privacy laws, including GDPR, CCPA, and LGPD
- Strengthening user trust through transparent and compliant data handling
- Enabling ethical marketing through anonymized, consent-based insights
- Securing sustainable legal certainty for data-driven strategies
Evaluating your analytics setup
You should evaluate whether your organization’s analytics tools genuinely comply with EU data protection laws or if they are simply hosted in EU-based data centers owned by non-European providers.
Whether your organization is just beginning its privacy journey or requires the highest level of data protection, Piwik PRO and Cookie Information offer scalable solutions to meet a range of compliance needs. Both provide free standard plans – Piwik PRO Core and Cookie Information – with EU-based data hosting via established cloud providers.
However, data residency alone doesn’t equal data sovereignty. What truly matters is who controls access to your data and under which jurisdiction. For organizations that require full legal assurance that their data remains beyond the reach of foreign laws, especially in light of evolving developments in the U.S., Piwik PRO Enterprise offers hosting on EU-owned infrastructure, helping organizations maintain sovereignty and comply with the strictest privacy regulations.
This is a pivotal moment for businesses to evaluate their hosting strategy. With legal frameworks like the EU-U.S. Data Privacy Framework under increasing scrutiny and potential invalidation, now is the time to make strategic, forward-looking choices. These are not decisions that can be made in haste – having control over your hosting environment today means being prepared for tomorrow’s regulatory challenges.
Ultimately, it’s up to each organization to determine its level of control. You have a choice – and now is the time to make it.
