0. Why Data Sovereignty Matters Now

In the 2020s, invisible walls are rising around the world. Geopolitical tensions, from the US-China tech rivalry to the Russia-Ukraine war, and the EU’s declaration of “digital sovereignty” (e.g., GAIA-X), have made one thing clear: technology alone can no longer connect the world seamlessly.

The cloud was once celebrated for its borderless scalability—deploy anywhere, serve everywhere. But while cloud infrastructure remains global, data itself is increasingly bound by national borders.

Governments are tightening control over data flows. Regulations like the EU’s GDPR, the US CLOUD Act, and China’s Data Security Law go beyond privacy—they’re now tools of national strategy and industrial protection.

This shift presents a new challenge for SaaS and cloud companies: technical innovation must now be paired with geopolitical awareness. Understanding local laws and ensuring compliance with data sovereignty demands has become essential for global success.

It’s time to ask:

• Are your systems designed for cross-border compliance?

• How are major tech players navigating this fragmented world?

• What must SaaS companies do to stay competitive in this new environment?

Let’s explore the global state of data sovereignty—and what companies can do to adapt.

1. Global Trends: Tech Goes Global, Data Stays Local

Cloud technology breaks down barriers. But politics and regulation are putting them back up. Today, we face a paradox: globally unified systems with locally restricted data.

1-1. Europe: Building Digital Sovereignty (GAIA-X, Project Sylva)

The European Union is leading the charge for digital sovereignty. Initiatives like GAIA-X aim to create a trusted, open, and secure cloud ecosystem that ensures European data is governed and processed within Europe.

Similarly, Project Sylva, backed by European telecoms, seeks to develop open-source cloud stacks tailored for 5G and edge computing—pushing toward technological independence in public and private sectors alike.

1-2. The US and China: Data as Strategic Asset

• China’s Data Security Law mandates that critical data stay within Chinese borders. Any export must pass stringent approval processes. Even Chinese cloud giants must build services grounded in domestic infrastructure.

• The US CLOUD Act requires US-based companies to turn over data—even if stored abroad—if requested by American authorities. In response, companies like Microsoft and Google have implemented regional segregation strategies such as EU Data Boundary to reassure customers.

1-3. Cloud Giants Go Local: Sovereign Cloud Models

Global cloud providers (AWS, Google, Microsoft) are introducing Sovereign Cloud offerings to align with local laws. These environments give customers more control over location, governance, and access—often built in partnership with local governments or companies.

1-4. The TikTok Case: Data Localization as Strategy

To counter fears of foreign surveillance, TikTok localized its operations: US data on Oracle infrastructure (“Project Texas”), and EU data in a dedicated Irish data center (“Project Clover”). This wasn’t just technical—it was a political and trust-focused strategy.

2. The Global Compliance Gap

While regulations are tightening, many companies still treat data sovereignty as an afterthought. But failing to prepare can mean more than just fines—it can block market entry altogether.

Key global trends include:

2-1. Cross-border Data Transfer Rules Are Getting Tougher

Most countries now require transparency about where user data is stored, how it’s handled, and whether it’s being sent overseas. Consent must be explicit, and contractual safeguards like Standard Contractual Clauses (SCCs) are often mandatory.

2-2. Cloud Nationalism Is on the Rise

Many governments now prioritize local cloud infrastructure and certifications for sensitive sectors like healthcare, defense, and finance. This has made it harder for global providers to win public sector contracts—unless they comply with national standards or work through trusted local partners.

2-3. Sovereign Cloud Isn’t Just a Label

Building trust requires more than marketing. A true Sovereign Cloud must meet the operational, legal, and political expectations of a country—offering data localization, access controls, and transparency on who can access what, when, and why.

3. What SaaS Companies Should Do Now

If you’re building a global SaaS business, compliance and data localization strategies are not optional. Here’s where leading companies are focusing:

3-1. Multi-Region Architecture

Distribute data based on user location. Host EU user data in Frankfurt, North American data in Virginia, and APAC data in Singapore or Seoul. This isn’t just about latency—it’s about legal jurisdiction and trust.

3-2. Explicit DPAs and SLAs

Include precise terms in your Data Processing Agreements (DPAs) and Service Level Agreements (SLAs):

• Where is the data stored?

• How long is it retained?

• Who can access it?

• How is it deleted?

Regulators and customers now expect clarity—and enforceability.

3-3. Country-Specific Response Playbooks

Prepare detailed internal manuals for how your company handles data access requests, breaches, or audits in key markets. Who leads? What law applies? What’s the timeline?

These plans turn compliance into a competitive advantage and crisis into trust.

4. Bottom Line: In the Cloud Era, Data’s Passport Is Power

Here’s the reality: Cloud infrastructure is global. Data is not.

Global SaaS companies are judged not only by what they build—but by how well they respect where and under what laws user data resides.

Ask yourself:

• “Where is our customer’s data stored?”

• “Which laws govern it?”

• “What happens if a government demands access?”

Only companies with clear answers—and the infrastructure to back them—can earn trust across borders. A go-global strategy without compliance is no longer viable. In this new era, data sovereignty is your competitive edge.

5. Walla: A Form Builder Built with Data Sovereignty in Mind

If your team isn’t ready to answer, “Which jurisdiction governs our users' data?”—it’s time to revisit your stack.

Walla is a modern form builder designed from the ground up with data sovereignty in mind. It’s more than just a tool to collect responses—it’s an infrastructure for trusted data handling.

Here’s what sets it apart:

• Region-Locked Hosting: Whether you need AWS Seoul, Naver Cloud, or even on-premises deployment, Walla ensures your data stays exactly where you need it to.

• Isolated & Encrypted Data Handling: With field-level encryption and separate storage layers, Walla aligns with GDPR, PIPA, and other global standards.

• Compliance-Ready Architecture: Supporting frameworks like ISMS-P, Walla is usable in sensitive sectors where compliance is non-negotiable.

In a world where data compliance is business-critical, Walla helps you go from “just a form” to full data control.