Protecting UK Data: Why Security and Sovereignty Matters Now More Than Ever

Author: Dan Kline | CEO

In an increasingly interconnected world, data has become one of our most valuable assets. This is particularly acute with the shifting geopolitical landscape and the deluge of data as AI takes hold and accelerates. How and where that data is transmitted, stored, and processed is not just a technical concern - it’s a matter of national security, economic stability, and individual privacy. While much attention is given to data storage, the security of the networks over which data travels is equally critical. If data is transmitted over the public internet, it is vulnerable to interception, collection, and exploitation. In contrast, companies and governments that maintain secure, private networks significantly reduce these risks, ensuring far greater levels of data protection.

What is data sovereignty?

At its core, data sovereignty refers to the concept that data is subject to the laws and governance of the country in which it is stored and transmitted. If UK businesses and institutions keep their data within secure UK-based networks and data centres, that data falls under UK jurisdiction and remains protected by UK laws. However, in today’s digital landscape, data often traverses multiple jurisdictions before reaching its final destination. The reliance on foreign infrastructure and cloud service providers (CSPs) means that UK data is frequently exposed to external threats.

Why does data sovereignty matter for the UK?

The UK is a digital economy, with government institutions, healthcare services, financial firms, and businesses relying heavily on technology. Data sovereignty and network security are critical for several reasons:

• National security and cyber threats

Hostile actors, including state-sponsored groups, frequently exploit unsecured networks to intercept or manipulate data in transit. If UK data is transmitted over international networks with weak security protocols, it becomes an easy target for cyberattacks, surveillance, and exploitation. Maintaining control over both data storage and the networks that transmit it reduces exposure to foreign interference and strengthens national security. By ensuring that sensitive data travels only through secure UK-based networks, businesses and government entities can prevent unwanted access and cyber threats.

• Economic independence and digital resilience

The UK must ensure its institutions and businesses are not overly reliant on cloud providers and network infrastructure that operate under foreign jurisdictions. If a geopolitical crisis or trade dispute arises, access to vital data and network operations could be compromised. Secure, UK-based network infrastructure strengthens digital resilience, ensuring businesses and public services remain operational without foreign influence. Having a closed, secure UK based network also minimises the risk of disruptions caused by external parties.

• Privacy and legal compliance

Many countries have surveillance laws that grant governments broad access to data moving through their networks. The U.S. CLOUD Act, for example, allows American authorities to request access to data stored by U.S.-based companies, regardless of its physical location. Additionally, foreign intelligence agencies may monitor or intercept data as it travels through global networks. By keeping data within UK jurisdiction and ensuring it is transmitted exclusively via secure UK-based networks, businesses can better comply with UK data protection laws such as GDPR and protect against unwarranted external access.

The emerging risks in a shifting geopolitical landscape

Recent global events highlight the urgent need for the UK to strengthen both its data sovereignty and network security. Key risks include:

• The growing U.S./EU divide

The UK must carefully consider the implications of relying on U.S.-based cloud and network providers, especially if policy changes under different administrations affect data access and security. Post-Brexit, UK businesses must also consider how evolving EU regulations might impact data transmission agreements.

• Increased cyber warfare and espionage

State-sponsored cyber threats are escalating, with attacks targeting critical infrastructure, government agencies, and private enterprises. Countries such as Russia, China, and North Korea have been linked to cyber espionage aimed at stealing sensitive information and disrupting networks. If the UK companies and the UK at large does not prioritise secure network infrastructure, its data remains vulnerable to interception and manipulation.

• Dependence on foreign cloud and network providers

The world’s largest cloud providers, such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud, operate under U.S. laws. UK data stored in these networks is subject to foreign jurisdiction. Additionally, disruptions caused by trade disputes or political tensions could compromise network availability and data security. If UK businesses and institutions continue to send data over the public internet, they will remain exposed to external risks.

• The dangers of public internet and quantum computing

A secure and sovereign network is critical because data intercepted on the public internet today can be decrypted today or in the future by quantum computers. The "Harvest Now, Decrypt Later" threat means attackers are already storing encrypted data, waiting for quantum technology to break it. Governments and cybersecurity experts stress the urgent need for post-quantum encryption, but delays mean data remains vulnerable. Keeping sensitive information off public networks and securing encryption keys now is the only way to prevent catastrophic breaches.

The path forward: strengthening UK data sovereignty and network security

To mitigate these risks, the UK must take proactive steps to enhance data sovereignty and network security:

• Develop UK-based secure networks and cloud infrastructure

Many European nations, such as France and Germany, have developed sovereign cloud initiatives like OVHcloud and T-Systems, which ensure data remains under local jurisdiction. To achieve true data sovereignty and security, the UK must own and control the networks and cloud environments that handle sensitive information. Instead of relying on foreign cloud providers and the public internet, UK businesses and government agencies should adopt UK-hosted, private, and compliant private network solutions.

• Secure and resilient data transmission networks

The UK government has already classified critical data centres as Critical National Infrastructure (CNI), but securing the networks that transmit data is equally important. The development of UK-owned and operated fibre-optic and satellite networks can reduce reliance on foreign-controlled infrastructure, enhancing security and operational continuity. Businesses should also invest in private networks rather than relying on the public internet to transfer sensitive data.

• Strengthen encryption and cybersecurity standards

Investing in advanced encryption protocols and secure communication networks will ensure data is protected from interception and cyber threats. End-to-end encryption, zero-trust architectures, and strict security policies should be mandatory for all businesses handling sensitive data. Secure virtual private networks (VPNs) and private cloud solutions should become the standard for businesses and government agencies to protect sensitive information.

• Strengthen data protection regulations

The UK must continue evolving its data protection laws to address emerging risks. This includes defining stricter requirements for where UK companies and public sector entities can transmit and store their data, as well as who can access it. Clear regulations will help safeguard sensitive information and limit exposure to foreign jurisdictions. Additionally, businesses must ensure their internal policies mandate the use of secure networks for all sensitive communications and transactions.