Trump Administration Battles Data Sovereignty Regulations

The Trump administration is urging U.S. diplomats to oppose international regulations on tech companies' data handling, fearing such laws could hinder AI services. With growing data sovereignty initiatives in Europe, the administration aims to counter restrictive data mandates to maintain global data flow.

The administration of President Donald Trump has taken a firm stance, instructing U.S. diplomats to resist international attempts to regulate American tech firms' data handling practices, particularly concerning foreign nationals. According to an internal diplomatic cable reviewed by Reuters, these regulatory efforts could adversely impact services associated with artificial intelligence.

Specialists observe that this development marks a shift towards a more confrontational strategy, as several countries seek to impose regulations on how Silicon Valley companies manage personal data, known as 'data sovereignty' or 'data localization.' The cable, signed by U.S. Secretary of State Marco Rubio on February 18, warns that such laws may disrupt global data flows, drive up costs, heighten cybersecurity risks, limit AI and cloud services, and expand governmental control, potentially infringing on civil liberties and enabling censorship.

Amid escalating tensions between the U.S. and the EU over protectionist trade policies, the Trump administration's push for a more assertive international data policy aims to counter overly stringent regulations like data localization mandates. European concerns about privacy and surveillance have grown due to the dominance of U.S. AI firms, which heavily rely on personal data, leading to increased scrutiny of American social media giants.