2026 Data Security and Compliance Risk Report

This report presents findings on data sovereignty in Europe, highlighting the region's regulatory maturity and ongoing risks. It documents that while 80% of European organizations feel well-informed about sovereignty requirements, one in three has experienced a sovereignty-related incident in the past year. The report outlines concerns regarding provider sovereignty guarantees, with 44% of respondents indicating this as a barrier to adopting European cloud solutions. It details the implications of the Schrems II decision, emphasizing the need for architectural controls rather than reliance on contracts. The report also discusses the business value associated with sovereignty, noting that improved security posture and enhanced customer trust are significant benefits. Furthermore, it identifies key resource demands for compliance, such as technical infrastructure changes and legal expertise. The report concludes with strategic recommendations for organizations to address provider trust issues and prepare for upcoming regulatory challenges, particularly in light of the EU AI Act and Data Act.