Why data sovereignty is now a dealbreaker in cybersecurity

In cybersecurity, so much emphasis has traditionally been placed on confidentiality — keeping data safe from prying eyes. But true cyber resilience hinges on the full CIA triad: confidentiality, integrity, and availability; a foundational model in cybersecurity. It is not just about keeping data private; it is about ensuring that it is accurate, trustworthy, and accessible when needed. And now, with growing pressure from regulatory frameworks and geopolitical tensions, another “letter” is rising in importance: L for location. Where your data lives and who has jurisdiction over it has become a defining factor in how organizations secure, manage, and control their most sensitive assets. 

As organizations across Europe assess their vendor relationships, data sovereignty has emerged as a board-level, make-or-break factor, one with real regulatory, reputational, and geopolitical consequences. New research from Foundry, conducted in partnership with CIO, CSO, and COMPUTERWOCHE, reveals a sharp shift in priorities among German enterprises. The message is clear: control, compliance, and sovereignty have become key in cybersecurity decision-making. 

It’s not just about skill; it’s about control 

For years, security leaders have prioritized technical chops when evaluating vendors. But the tide is turning. In this new study, 114 IT and business decision-makers from midsize and large German companies were asked to rank their most important criteria for digital sovereignty. The top response was clear: control over data infrastructure — in other words, data residency — was cited by 67% of all companies, and by 72% of large enterprises. This outranked other factors such as technical independence (58%), compliance and data protection (56%), business continuity (35%), in-house cybersecurity expertise (33%), and quality of partnerships (17%). 

When it comes to selecting IT security providers, the research found the most valued attributes were technological expertise (68%) and data security/compliance (64%), while only 10% of respondents considered certifications a top factor. The physical location of the provider or data center was important to a minority (29% and 19%, respectively). 

The takeaway? While trust is still built on expertise and compliance, control over data infrastructure now sits at the top of the buying agenda—well ahead of certifications or even in-house expertise. Today, transparency, compliance, and especially data control are what earn trust. 

Privacy and compliance are redefining expertise 

 That is not to say technical knowledge does not matter — it absolutely does. Also, 68% of respondents to the Foundry survey still rank it as a key factor when choosing a security partner. But increasingly, that expertise must come wrapped in a layer of European values, especially privacy and ownership.  

Surprisingly, only 19% listed data center location as a top priority. And just 29% cited jurisdictional alignment, highlighting a potential gap in understanding the legal implications of cross-border data storage. 

 Here’s why that matters, even if your data is hosted in Europe, working with a U.S.-based provider could expose you to foreign surveillance laws, like the U.S. CLOUD Act. It’s a nuance that more companies are starting to wake up to and one that should be on every security leader’s radar. 

Geopolitics now shapes cyber strategy 

The most eye-opening statistic from the study is that 87% of respondents said that geopolitics and data sovereignty now influence their choice of security vendors. For large enterprises, that figure climbs to a staggering 93%. That shift is not just academic. It reflects growing awareness that a vendor’s home country — and the legal obligations that come with it — can impact everything from access to data to incident response protocols. For organizations that operate under strict data protection mandates, which means aligning with providers that not only talk about compliance, but also live it with regional infrastructure, legal clarity, and a firm grasp of European regulatory priorities.  

Where your data sits is no longer enough. It is where the provider belongs, and which courts they answer to, that matter. If your provider’s legal home changes, your risk profile does too.  

The big picture: Why this research matters 

Security used to be about keeping the bad guys out. Now it’s just as much about knowing who holds the keys to your data, and which laws apply when those keys are turned. This research reflects a broader shift across Europe: 

• A call for greater transparency 

• A demand for compliance-by-design 

• A preference for regionally governed solutions 

And at Mimecast, we’re here for it. With UK headquarters, a customer-centric approach to data hosting, and a global footprint that includes Europe-based infrastructure, we give customers choice and control. Whether you are operating in the UK, the EU, or beyond, we help ensure your data stays where it needs to be to meet your sovereignty, security, and compliance requirements. 

Let’s build a more resilient (and sovereign) Europe 

As threat landscapes grow more complex, and digital sovereignty becomes central to trust, European organizations are being asked to rethink the fundamentals of cybersecurity. This study offers both a warning and a way forward; it is time to prioritize not just protection, but possession.  

It is time to think not just about protection, but possession. At Mimecast, we help European businesses take back control: of their data, their risk, and their compliance.  

To see the full findings and how Mimecast is helping businesses build locally grounded, globally resilient security strategies, read the full report.