Data security meets diplomacy: Why Estonia is storing its data in Luxembourg
a system of high-tech national ID cards
And when Russia annexed the Crimean Peninsula from Ukraine in 2014, the question of “data continuity” — should a military crisis develop — came to the forefront of public discourse.So, Estonia looked outside its borders to secure its data in the case of a military attack or other major emergency. Wanting full control and jurisdiction over its data, it opted for a so-called data embassy — no ambassadors or diplomatic missions attached.
The unique arrangement points to a growing realization that the increasing digitization of services and sensitive infrastructure can leave governments vulnerable. And while governments can contract private businesses such as Google and Microsoft for cloud services, such agreements can have shortcomings.
“We didn’t want to use a random cloud that’s somewhere around the world, where we don’t know what sort of rules and laws apply to the data we put there,” Sikkut said. “We wanted to have full jurisdiction over the data. No private cloud partner can really do that.” Government officials told NBC News that Monaco, another microstate in the middle of Europe, is following in Estonia's footsteps and entered into a digital partnership with Luxembourg in December.Monaco is the second smallest nation in the world, at about three-quarters of a square mile, smaller than New York’s Central Park.
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