Europe’s regulatory landscape is undergoing a fundamental transformation. With the introduction of legislation such as NIS2 and the Data Act, and the ongoing tension between the GDPR and the US CLOUD Act, data sovereignty is no longer a nice-to-have, but a strategic necessity. For organisations in the Netherlands, this means they need to (re)consider where and how they design their infrastructure.
NIS2: cybersecurity becomes a legal obligation
The Dutch Cybersecurity Act (Cyberbeveiligingswet), the Netherlands’ national implementation of the NIS2 Directive, is expected to enter into force in the second quarter of 2026. Compared to the first NIS Directive, this legislation applies to significantly more organisations. Companies in critical sectors with at least 50 employees or annual revenue exceeding €10 million will be subject to these new requirements.
This law has a major impact. Management becomes directly responsible for identifying and addressing cyber risks, increasing the pressure to choose infrastructure with demonstrable compliance and transparent security processes. Organisations are required to conduct risk assessments, implement measures to ensure continuity, and report incidents to the supervisory authority within 24 hours. Customers running business-critical environments in an external data center will take a closer look at their hosting partner’s cyber resilience.
Data Act: the end of vendor lock-in
Since 12 September 2025, the EU Data Act has been in force, with implications for cloud and data center services. The Act gives customers the right to switch between cloud providers more easily, and from 12 January 2027, the costs for such switching will be fully phased out. From a data sovereignty perspective, the Data Act is particularly relevant because it introduces safeguards that prevent government authorities from other countries from accessing non-personal data where this would conflict with EU or national law. This is a direct response to cross-border surveillance laws such as the US CLOUD Act, and it means that European data center locations offer strategic advantages for data sovereignty.
CLOUD Act: the ongoing threat to data sovereignty
The US CLOUD Act of 2018 remains a key point of discussion and a source of risk. It gives US authorities the right to compel US companies to hand over data stored abroad, even if that data belongs to European citizens and is located in EU data centers. This is not merely theoretical. Even when European citizens’ data is stored in EU data centers, the CLOUD Act can still require US companies to hand over that data to US authorities. This undermines the GDPR’s privacy protections and European data sovereignty. For organisations handling sensitive information, from intellectual property to customer data, this creates a complex legal tension.
The role of regional data centers in a sovereign data strategy
In this changing landscape, choosing a regional data center is crucial. Demand for sovereign cloud solutions in the Netherlands is rising as data protection and digital sovereignty requirements become increasingly stringent and more closely aligned. This is especially relevant for organisations in heavily regulated sectors such as healthcare, finance and government.
A common misconception is that data sovereignty is only about where servers are physically located. Physical location is not the same as legal jurisdiction. When a cloud provider falls under US jurisdiction, the CLOUD Act applies. A regional data center with Dutch or European ownership offers inherent protection against unwanted access to EU data. This is something US hyperscalers cannot guarantee, even when they operate European data centers.
Colocation as a sovereign alternative
The Netherlands retains its position as a digital gateway to Europe. Amsterdam is one of the largest internet exchanges in Europe and globally, making the country a central hub for cloud providers, organisations, and digital platforms that require fast, reliable, low-latency connectivity. Regional colocation facilities benefit from this infrastructure while maintaining full control and transparency over their customers’ data.
Key considerations for data center customers
For customers, these developments mean they need to consider several strategic factors when selecting a data center partner. That starts with assessing the jurisdiction under which a data center falls. It also means looking beyond marketing claims about “EU-based data centers.” A company headquartered outside the EU remains subject to the laws of its home country, including the US CLOUD Act. That is why it is important to carefully review a provider’s ownership structure and legal jurisdiction.
From a NIS2 compliance perspective, it is strongly recommended to start conducting risk analyses now, raise employee awareness of cyber risks, and tighten incident procedures. The choice of data center infrastructure should be an integral part of this compliance documentation.
The Data Act strengthens digital sovereignty by enabling organisations to move their data and applications freely, without being tied to proprietary systems or isolated infrastructures. This creates strategic independence when selecting data center providers. It is therefore advisable to develop migration scenarios that maximise flexibility.
Even if an organisation is not directly in scope of the Dutch Cybersecurity Act, it may still face contractual cybersecurity requirements if it supplies products or services to a regulated organisation. It is therefore wise to choose a data center partner that can demonstrably meet the highest security standards, including ISO/IEC 27001, and that provides transparent audit trails.
Conclusion: sovereignty as a competitive advantage
Taken together, NIS2, the Data Act, and the ongoing tension between the GDPR and the CLOUD Act mark a turning point in how European organisations need to think about their data infrastructure. Data sovereignty is no longer just a compliance checkbox. It is a strategic differentiator that influences operational flexibility, compliance, and risk management.
Regional colocation data centers in the Netherlands offer a unique proposition. They combine world-class connectivity and infrastructure with clear legal jurisdiction and compliance with some of the strictest data protection rules in the world. At a time when data control is closely tied to organisational success, choosing a sovereign data center partner is not a defensive move. It is a forward-looking investment in resilience and autonomy.