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'Data embassies' promise bubbles of digital sovereignty ..

Scratch the surface, and they look more like a sales pitch – or a soft power 
play


By Simon Sharwood  24th Jul 2024   
https://www.theregister.com/2024/07/24/data_embassies/


Embassies are bubbles of sovereignty that local authorities cannot freely enter 
and in which certain communications are privileged – an arrangement that is 
generally agreed as essential to facilitate international relations. 

And now, the same protections are being suggested as needed to create a "data 
embassy" – datacenters that local authorities can't access and in which nations 
can store info and run software on foreign shores.

Estonia already has a data embassy, at a datacenter located in Luxembourg – the 
two nations struck an agreement to afford the facility the same rights as a 
conventional embassy. The Baltic nation owns the hardware, and uses it as a 
backup for its digital services and critical datasets. It's operated without 
incident since 2017.

Monaco has also agreed to create an "e-embassy" in Luxembourg, after deciding 
the tiny principality "is too small with regard to the risk of a natural 
disaster or cyber attack." Luxembourg may not be your first thought when 
seeking wide open spaces, but compared to Monaco it qualifies.

https://en.gouv.mc/Policy-Practice/A-Modern-State/News/The-Principality-and-the-Grand-Duchy-Linked-by-a-New-Bilateral-Agreement-Pierre-Dartout-and-Xavier-Bettel-Sign-an-Agreement-to-Create-an-e-Embassy-of-Monaco-in-Luxembourg

Monaco is not alone in being too small to host large datacenters or multiple 
facilities that improve resilience.


Australian telco Vocus recently made a submission [PDF] to an Australian 
parliamentary inquiry into priorities of Pacific Island countries and the 
Pacific Region, in which it pointed out that small island nations aren't likely 
to attract investment from datacenter operators or hyperscale clouds. 

https://regmedia.co.uk/2024/07/24/vocus_pacific_inquiry_submission.pdf

Allowing data embassies in Australia – which has plenty of datacenters – could 
therefore help Pacific nations to adopt modern infrastructure without 
compromising sovereignty.

India has also advanced the idea. In 2023, finance minister Nirmala Sitharaman 
used her budget speech to announce the nation would explore the creation of 
data embassies "for countries looking for digital continuity solutions."

India envisioned data embassies located in the Gujarat International Finance 
Tec-City International Financial Services Centre – a zone created to host 
international businesses and which is home to Tier-4 datacenters.

Dr Deborshi Barat, an Indian lawyer who has written about India's proposal, 
told The Register regulations that would allow India to formalize data embassy 
hosting rules remain incomplete. India's 2024 budget, delivered yesterday, 
doesn't mention the concept. Dr Barat hoped it would advance last year's plan.

Cui bono?

As The Register explored the concept of data embassies, it became apparent that 
it's not just nations in need of secure sovereign compute that may benefit from 
them.

India, for example, has made sharing technical capability and free software its 
government developed a big part of its diplomatic outreach. 

By sharing tools like its Aadhaar identity-as-a-service platform or UPI 
payments scheme, India can become a big part of other nations' digitalization 
process. 

Helping its neighbors to secure their infrastructure in a data embassy creates 
another chance to get closer. Finding tennants for a flagship economic zone 
doesn't hurt, either.

Vocus, meanwhile, has partnered with Google to build a submarine cable linking 
Australia, the US, and Pacific nations in between. Data embassies located in 
Australia will send data over that cable, which means revenue for Vocus.

Suggesting data embassies rely on commercial cloud providers also means those 
orgs can profit. Which may be why Google is keen on the idea.

Establishing more data embassies will need either changes to the Vienna 
Conventions that govern diplomatic and consular relations, or bilateral 
agreements. To date, only the latter have been created.

And even if those diplomatic niceties can be addressed, technical challenges 
remain.

Vindu Puri, a Delhi-based advisor at Australian consultancy Intelligent 
Business Research Services – which specializes in advising IT and business 
managers – told The Register "addressing security concerns, data sovereignty 
issues and regulatory hurdles is crucial for successful implementation."

Puri also warned that vendor lock-in could become an issue.  Which may be why 
the concept is not, at present, being widely discussed. 

Indeed, data embassies are absent from analyst firm Gartner's 2024 Hype Cycle 
for Digital Sovereignty.


COMMENTS:  Post your comment

* 23 hrs  Doctor Syntax (Silver badge)

"Suggesting data embassies rely on commercial cloud providers also means those 
orgs can profit. Which may be why Google is keen on the idea."

I wouldn't have thought it would have been possible for any US owned coporation 
to participate. Luxembourg night grant embassy rights to a data cente run by 
Google or any other US corporation but unless the US also does so the data 
centre would be at the mercy of the CLOUD Act.


* 6 hrs trindflo (Silver badge)

India ... sharing ... free software

"India, for example, has made sharing technical capability and free software 
its government developed a big part of its diplomatic outreach. 
 By sharing tools like its Aadhaar identity-as-a-service platform or UPI 
payments scheme"

They're offering to do what now? For free? Beware of Geeks bearing gifts.

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