European Data Sovereignty: Why Your Security Vendor's Location Matters
Security tools see everything—network traffic, user behavior, authentication patterns, sensitive data flows. When you deploy a security platform, you're trusting it with your organization's most sensitive information. Where that vendor is based, and where your data goes, matters more than ever.
What is Data Sovereignty?
Data sovereignty refers to the concept that data is subject to the laws and governance structures of the nation where it's collected or stored. For European organizations, this means ensuring data remains under EU legal jurisdiction.
Why It Matters for Security:
Security tools process your most sensitive data:
• Network traffic patterns revealing business operations
• Authentication logs showing user behavior
• Threat intelligence exposing vulnerabilities
• Incident data containing breach details
This data must be protected not just technically, but legally. Data sovereignty ensures foreign governments or courts cannot compel access to your security information.
The Legal Landscape
GDPR (EU):
The General Data Protection Regulation restricts transfer of personal data outside the EU unless adequate protections exist. Security logs often contain personal data (IP addresses, user identifiers, behavioral patterns).
Schrems II:
The 2020 Court of Justice ruling invalidated the EU-US Privacy Shield and raised questions about Standard Contractual Clauses. Transfers to countries without adequate protection require supplementary measures.
CLOUD Act (US):
US law allows government access to data held by US companies regardless of where it's stored. A US-based security vendor could be compelled to provide access to your data even if stored in EU data centers.
FISA Section 702 (US):
Allows surveillance of non-US persons' communications without individual warrants. Security telemetry from EU organizations using US vendors could potentially be accessed.
The Conflict:
GDPR prohibits certain transfers; US law may compel them. Using US-based security vendors places EU organizations in a legal gray zone.
Specific Risks for Security Data
Security telemetry is particularly sensitive:
Intelligence Value:
Your security data reveals:
• Network architecture and vulnerabilities
• Detection gaps and blind spots
• Incident response capabilities
• Business operations and critical assets
This intelligence is valuable to competitors, nation-states, and adversaries.
Surveillance Risk:
Security platforms see communications metadata even when content is encrypted:
• Who communicates with whom
• When and how frequently
• Data volumes and patterns
This metadata can be as revealing as content itself.
Compliance Risk:
Using non-EU security vendors may:
• Violate GDPR transfer restrictions
• Conflict with NIS2 supply chain requirements
• Create audit findings from regulators
• Expose organization to enforcement actions
The Case for European Security Vendors
European-based security vendors offer clear advantages:
Legal Clarity:
• Subject only to EU law
• No foreign government access provisions
• Clear GDPR compliance path
• No Schrems II transfer complications
Data Location:
• Data stored and processed within EU
• No international transfers required
• Physical and legal proximity to customers
• Subject to EU data protection authorities
Regulatory Alignment:
• Built with EU regulations in mind
• Native NIS2 and GDPR compliance
• Understanding of EU critical infrastructure requirements
• Aligned with European cybersecurity frameworks
Trust:
• No hidden obligations to foreign intelligence agencies
• Transparent legal jurisdiction
• Auditable by EU authorities
• Accountable under EU law
Practical Considerations
When evaluating security vendors for data sovereignty:
Company Jurisdiction:
• Where is the company incorporated?
• Where are ultimate ownership and control?
• What legal obligations apply?
Data Processing Location:
• Where is data stored and processed?
• Can you restrict processing to EU?
• What happens to data in transit?
Subprocessors:
• Does the vendor use US-based cloud providers?
• Where are subprocessors located?
• What access do subprocessors have?
Contractual Protections:
• What commitments exist for data location?
• How are government requests handled?
• What notification obligations exist?
Technical Architecture:
• Can the solution run entirely on-premises or in EU cloud?
• Is there mandatory telemetry to non-EU locations?
• What data must leave your environment?
The Strategic Dimension
Beyond compliance, data sovereignty reflects strategic concerns:
Digital Autonomy:
Europe's push for "digital sovereignty" reflects desire to reduce dependence on non-EU technology providers. Security—the most sensitive technology category—is where this matters most.
Geopolitical Stability:
Regulations and geopolitical relationships change. Depending on foreign security infrastructure creates vulnerability to political shifts.
Economic Development:
Supporting European security vendors strengthens EU cybersecurity industry and keeps critical capabilities within Europe.
Trust Chain:
Can you truly verify that a foreign-owned vendor hasn't been compromised or compelled to introduce backdoors? European vendors under EU oversight offer a simpler trust model.
Hypergraph's Approach
Hypergraph is European by design:
European Company:
• Incorporated and operated in the EU
• Subject only to EU law
• No obligations to foreign governments
• European ownership and control
EU Data Processing:
• All data stored and processed within EU
• No transfers to non-EU jurisdictions
• EU-based cloud infrastructure
• Physical data center presence in Europe
Regulatory Design:
• Built with GDPR and NIS2 requirements from day one
• Native compliance, not retrofitted
• Aligned with European security certification schemes
• Transparent and auditable
When you deploy Hypergraph, your security data stays under EU jurisdiction—no asterisks, no complications.