US Diplomats Ordered to Fight Data Sovereignty Laws
The US ordered diplomats to lobby against foreign data laws that could hinder AI services. A State cable says these rules disrupt data flows and raise costs.
The United States[Country:{ "assets":{ "country":"US" } }] has instructed its diplomats to actively oppose international efforts to regulate how American technology companies handle foreign data. According to an internal State Department cable, the administration views these "data sovereignty" initiatives as significant threats to artificial intelligence development and global digital services. Experts suggest the move signals a more confrontational approach as foreign countries seek limits on how Silicon Valley firms process and store personal information. In the cable dated February 18 and signed by Secretary of State Marco Rubio, the agency argued that such laws disrupt global data flows, increase costs, and heighten cybersecurity risks. The document claimed that data localization mandates limit artificial intelligence (AI) and cloud services while expanding government control in ways that could undermine civil liberties and enable censorship. The State Department emphasized its support for cross-border data flows that promote innovation while protecting privacy and free expression. > We seek to counter unnecessarily burdensome regulations, such as data localization mandates, the department stated, noting its readiness to partner with countries sharing these objectives. Data sovereignty initiatives have gained momentum, particularly in Europe, amid rising tensions over protectionist trade policies. The dominance of American AI companies, which rely on massive datasets, has intensified European concerns regarding privacy and surveillance. This pressure has increasingly targeted social media giants like Meta Platforms, Inc.[Symbol:{ "assets":{ "symbol":"META" } }]. Bert Hubert, a Dutch cloud computing expert, noted that the current administration is demanding that international partners disregard privacy regulations that might hinder American business interests. The scope of these laws varies, with some requiring data to be stored within national borders and others restricting how information is shared with foreign entities. Rubio’s cable specifically cited the European Union’s 2018 General Data Protection Regulation (GDPR) as an example of a framework that imposes burdensome restrictions. Additionally, the cable warned that China[Country:{ "assets":{ "country":"CN" } }] is leveraging technology infrastructure projects to promote restrictive data policies, expanding its global influence and access to data for strategic leverage. In response, the Chinese Embassy in Washington stated that Beijing attaches great importance to cybersecurity and data security. American diplomats have been tasked with monitoring proposals that restrict data flows and promoting the Global Cross-Border Privacy Rules Forum. This international group, established in 2022, includes the U.S., Mexico[Country:{ "assets":{ "country":"MX" } }], Canada[Country:{ "assets":{ "country":"CA" } }], Australia[Country:{ "assets":{ "country":"AU" } }], and Japan[Country:{ "assets":{ "country":"JP" } }]. The forum's mission is to facilitate the free flow of data while ensuring effective global privacy protections. This latest diplomatic push follows previous efforts to oppose the European Union’s Digital Services Act, which regulates content moderation on major social media platforms.
