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THE C YBER PRO JE CT
Sovereignty and Data Localization
Emily Wu
The Cyber Project
Belfer Center for Science and International Affairs Harvard Kennedy School
79 JFK Street
Cambridge, MA 02138
/Cyber
Statements and views expressed in this report are solely those of the author and do not imply endorsement by Harvard University, Harvard Kennedy School, or the Belfer Center for Science and International Affairs.
Design and layout by Andrew Facini
Copyright 2021, President and Fellows of Harvard College Printed in the United States of America
REP
REP OR T
JU LY 20 21
THE C YBER PRO JE CT
Sovereignty and Data Localization
Emily Wu
Table of Contents
Executive Summary 1
Introduction 3
Data sovereignty and its importance in the emerging technology landscape 5
Spotlight: Cloud computing 6
Spotlight: 5G telecommunications 7
Spotlight: Artificial Intelligence 8
Data localization is used to assert data sovereignty 9
Types of Data Localization Policies 11
Local-only storing, transmission, and processing 11
Local copy required 12
Narrower, conditional restrictions 13
Reasons for Data Localization Policies 14
Technical concerns 14
Value concerns 17
How should policy makers respond? 19
Conclusion 22
Bibliography 23
Adobe Stock
Executive Summary
Data localization policies impose obligations on businesses to store and process data locally, rather than in servers located overseas. The adoption of data localization laws has been increasing, driven by the fear that a nation’s sovereignty will be threatened by their inability to exert full control over data stored outside their borders. This is particularly relevant to the US given its dominance in many areas
of the digital ecosystem including artificial intelligence and cloud computing.
Unfortunately, data localization policies are causing more harm than good. They are ineffective at improving security, do little to simplify the regulatory landscape, and are causing econ
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