Digital sovereignty

The CLOUD Act explained

What the US law covers, why data storage in Europe does not protect you and what businesses can do.

The CLOUD Act is a US law that gives US authorities access to data held by US providers, even when that data is stored in Europe. It affects services such as Microsoft 365, Google Workspace, AWS, Azure, Salesforce and many more.

In June 2025, Microsoft France told the French Senate it could not guarantee that data would never be handed to US authorities (report). This has significantly intensified the debate about digital sovereignty in Europe.

There are European alternatives for most services. See the overview: European alternatives to US software.

Key points

In force since 2018

The Clarifying Lawful Overseas Use of Data Act is a US law from March 2018. It governs when US authorities can demand data from providers.

Control, not location

What matters is whether a US company controls the data, not where it is stored. This also applies to data centers in Germany and to European subsidiaries.

Conflict with the GDPR

European data protection authorities consider a transfer based solely on the CLOUD Act generally incompatible with Art. 48 GDPR (e-recht24). Providers are caught between two legal systems.

When the CLOUD Act applies

Simplified overview. In individual cases, the provider’s ownership and control are decisive.

ProviderStorage locationCLOUD Act applies
US provider USAyes
US provider Data center in Germanyyes
European subsidiary of a US corporation Data center in Germanyyes, according to most assessments
European provider without a US parent Europegenerally no
Your own servers your own data centerno

What businesses can do

  1. Take stock

    Which services from US providers are in use, and what data is stored there?

  2. Assess the risks

    Where are trade secrets, personal data or particularly sensitive data?

  3. Review alternatives

    There are European solutions for most services. Not everything has to switch at once.

  4. Switch step by step

    Start with the most critical data, and the rest follows according to plan.

Frequently asked questions

What is the CLOUD Act?

A US law from 2018 that requires US providers to hand over data when ordered by US authorities, regardless of where the data is stored.

Does the CLOUD Act apply to data centers in Germany?

Yes, if a US company controls the data. In June 2025, Microsoft France told the French Senate it could not rule out a transfer to US authorities.

Do EU data centers or sovereign cloud offerings from US providers protect us?

They improve data residency and operation within the EU. Whether they protect against the CLOUD Act is disputed as long as the provider belongs to a US corporation.

What about the EU-US Data Privacy Framework?

The framework governs transfers of personal data to the US. It does not remove US authorities’ access to data held by US providers under the CLOUD Act.

Do I have to switch off all US services now?

No. A sensible approach is to take stock and then switch step by step, starting with the most sensitive data.

European alternatives

Review your dependence on US software

We look at which US services you use and show where European alternatives exist.

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