{"id":248531,"date":"2026-05-18T14:30:49","date_gmt":"2026-05-18T12:30:49","guid":{"rendered":"https:\/\/spotler.com\/blog\/what-is-the-us-cloud-act"},"modified":"2026-05-18T14:30:49","modified_gmt":"2026-05-18T12:30:49","slug":"what-is-the-us-cloud-act","status":"publish","type":"blog","link":"https:\/\/spotler.com\/en-gb\/blog\/what-is-the-us-cloud-act","title":{"rendered":"What is the US CLOUD Act?"},"content":{"rendered":"

Meaning, GDPR impact and US vs EU data hosting explained <\/em><\/h2>\n

Everyone who is using cloud software or software as a service (Saas) \u2013 and that\u2019s basically the whole world \u2013 you\u2019ve likely come across the US CLOUD Act in discussions around data privacy, GDPR, and data security. <\/strong><\/p>\n

But what exactly is this law? Has anything changed in recent years? And what does it mean in practice when choosing between US and European software providers? <\/strong><\/p>\n

In this article, we\u2019ll give you a clear and practical explanation so you can better understand the impact on your data and technology decisions. <\/strong><\/p>\n

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What is the US CLOUD Act? <\/h2>\n

The CLOUD Act<\/a> (Clarifying Lawful Overseas Use of Data Act) is a US law introduced in 2018. It allows American law enforcement authorities to request access to data from US-based technology companies, even if that data is stored outside the United States. <\/p>\n

In simple terms: If your data is processed or controlled by a company that falls under US jurisdiction, US authorities can legally request access to that data, regardless of where it is physically stored. <\/p>\n

This is where the complexity around international data privacy begins. <\/p>\n

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What does the CLOUD Act mean in practice? <\/h2>\n

Although the CLOUD Act is primarily used for serious criminal investigations, its implications go beyond law enforcement. The most important takeaway is: <\/p>\n

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Where your data is stored is not the same as who controls your data<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p>\n

Many organisations assume that storing data in Europe automatically protects it. In reality, the legal jurisdiction of the provider plays a crucial role. <\/p>\n

If you use a US-based cloud or SaaS provider, that company may be required to provide access to data under US law. This can create tension with the General Data Protection Regulation<\/a> (GDPR), which imposes strict rules on access to and processing of personal data. <\/p>\n

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What has changed? Why the CLOUD Act is back in focus <\/h2>\n

The law itself hasn\u2019t significantly changed, but the context around it has evolved. <\/p>\n

Schrems II changed the playing field <\/h3>\n

In 2020, the European Court of Justice issued its ruling in the Schrems II case<\/strong><\/a>, invalidating the Privacy Shield framework due to concerns about access to EU data by US authorities. <\/p>\n

The key takeaway from this ruling: <\/h4>\n

It is not enough for data to be stored in Europe. It must also be protected against access under foreign laws that conflict with GDPR. <\/p>\n

Increased scrutiny and buyer awareness <\/h4>\n

Since Schrems II: <\/p>\n

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  • Organisations must better justify how they handle international data transfers<\/li>\n
  • Legal and compliance teams are more involved in vendor selection<\/li>\n
  • Buyers increasingly ask detailed questions about data access and jurisdiction <\/li>\n<\/ul>\n

    At the same time, data sovereignty has become a real factor in procurement and vendor selection processes. <\/p>\n

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    US vs EU data hosting: what\u2019s the real difference? <\/h2>\n

    At first glance, US and European providers may seem similar. Both offer scalable cloud infrastructure and advanced capabilities. The real difference lies in legal jurisdiction and data access rights<\/strong>. <\/p>\n

    US-based providers <\/h3>\n

    US providers (including hyperscalers and many SaaS platforms) offer powerful, globally distributed infrastructure. However, they are subject to US law, including the CLOUD Act. <\/p>\n

    This means: <\/p>\n

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    • Data may be requested by US authorities through legal procedures<\/li>\n
    • Jurisdiction applies regardless of where the data is stored<\/li>\n
    • Additional safeguards are required to meet GDPR obligations <\/li>\n<\/ul>\n

      For many organisations, this is manageable\u2014but it requires awareness and proper risk assessment. <\/p>\n

      <\/div>\n

      EU-based providers <\/h3>\n

      European providers operate fully under EU law and are directly aligned with GDPR requirements. <\/p>\n

      In practice, this means: <\/p>\n

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      • Data is governed exclusively by European legislation<\/li>\n
      • Lower exposure to foreign government access requests<\/li>\n
      • Simpler and more predictable compliance processes <\/li>\n<\/ul>\n

        For organisations prioritising transparency and control, this can be a decisive advantage. <\/p>\n

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        The key insight <\/h3>\n

        This is not about \u201cgood\u201d versus \u201cbad\u201d providers. Choosing a software provider is also choosing the legal framework under which your data is governed. And that makes it a strategic decision. Not just a technical one. <\/p>\n

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        Comparison: US vs EU data hosting<\/h2>\n