Sovereignty guide

Sovereign AI: what hosting in Europe protects, and what it does not

Updated: · General information, not legal advice.

In short

Hosting an AI system in a data centre located in Europe does not remove it from US law: the CLOUD Act allows US authorities to require data from a provider subject to their jurisdiction, wherever the data is stored. The sovereignty of an AI system is therefore judged on four criteria: the jurisdiction of its providers, where data and computation are located, external dependencies (model APIs in particular) and control over keys and logs.

GDPR applies in every case: legal basis, impact assessment, processor contracts and safeguards for transfers remain the organisation's responsibility, whoever the host is.

What the CLOUD Act says

PointContentSource
EnactmentClarifying Lawful Overseas Use of Data Act, enacted on 23 March 2018 as part of the federal appropriations actUS Department of Justice
ScopeA provider of electronic communication or remote computing services must disclose data in its possession, custody or control, whether stored in the United States or abroad18 U.S.C. § 2713
ChallengeThe provider may move to quash a request in certain cases, in particular when the customer is not a US person and disclosure would violate the laws of a country that has concluded an agreement with the United States. This route therefore depends on whether such an agreement exists with the country concerned18 U.S.C. § 2703(h)
Customer noticeA court may order the provider not to inform its customer of the request for a set period18 U.S.C. § 2705(b)

On the European side, Article 48 GDPR provides that a judgment or decision of a third-country court or authority requiring the transfer of personal data is only recognised or enforceable if based on an international agreement, such as a mutual legal assistance treaty (GDPR, Article 48). A provider subject to both laws can therefore face conflicting obligations.

Transfers of personal data to certified US companies are also covered by the adequacy decision of 10 July 2023 on the EU-US Data Privacy Framework (Implementing Decision (EU) 2023/1795). That decision covers commercial transfers; it does not remove the reach of the CLOUD Act.

The 4 sovereignty criteria for an AI system

CriterionQuestion to askWhy it matters for AI
Provider jurisdictionWhich law applies to the host, the model vendor and their parent companies?The CLOUD Act follows the provider, not the server
LocationWhere are data, search indexes and logs stored, and where does computation take place?Prompts and logs often contain more sensitive information than the source data
External dependenciesDoes the system call a model API, a search service or telemetry outside the EU?A single external call is enough for data to leave
Control over keys and logsWho holds the encryption keys and who can read the decision logs?The logs required by the AI Act for high-risk systems are themselves sensitive data

For cloud services, France has an official benchmark: the ANSSI SecNumCloud qualification, whose current version adds criteria for immunity from non-European laws (EU headquarters, majority European ownership, limits on using non-EU third parties, operational autonomy). The qualification covers a specific offering, not a whole provider (ANSSI, SecNumCloud FAQ).

Comparing deployment options

OptionProvider jurisdictionExternal dependencyOperating effortSuitable for
On-premises (the organisation's servers)The organisation's ownNone if the model is localHigh: hardware, updates, securityThe most sensitive data, isolated environments
Private cloud run by a European providerEuropean law, to be checked for each provider and its subcontracting chainLow if the model is hosted in that cloudMediumSensitive data, variable capacity needs
European region of a US providerEuropean and US lawDepends on the architectureLowData whose exposure to US law is accepted after analysis
Model API hosted outside the EUThe vendor's countryTotal for the data sentVery lowNon-sensitive data, prototypes
HybridDepends on the splitLimited and listedMediumSensitive data processed locally, non-sensitive tasks delegated

The choice is made per data type and per process, not for the whole organisation. The options KOREV offers are detailed on the Deployment page.

GDPR: what remains your responsibility, whoever the host

  • Legal basis and purpose of each processing operation (Articles 5 and 6).
  • Data protection impact assessment when processing is likely to result in a high risk (Article 35).
  • Processor contract with each provider processing data on your behalf (Article 28).
  • Safeguards for transfers outside the European Economic Area, including by your providers' providers (Articles 44 to 49).
  • Decisions based solely on automated processing: the right to obtain human intervention in the cases provided for (Article 22).
  • Minimisation and retention of data, including in prompts and logs.

Source: Regulation (EU) 2016/679.

What KOREV AI offers and does not claim

  • Choice of deployment: European cloud, hybrid or on-premises, depending on the environment defined by the organisation. The same architecture works at each level of independence.
  • A model that can run locally: KOREV Atlas is built on Olmo 3 32B, an open model released by the Allen Institute for AI (Ai2), so it can run without a mandatory call to an external API. For on-site execution, a compact inference node (for example an MSI EdgeXpert) can host the local models and the KOREV Evidence agents. See the deployment options.
  • Listed dependencies: in hybrid mode, the accepted external dependencies are listed explicitly for each project.
  • Client data: KOREV does not use its clients' data to train public models.
  • No certification claimed: KOREV AI holds no SecNumCloud qualification, HDS certification or ISO 27001 certification to date. If one of these is required, it must be provided by the host chosen for the project.

Source: Trust Center.

Checklist: assessing the sovereignty of an AI system

  1. List every provider in the system: host, model vendor, vector database, web search, telemetry, support.
  2. For each, identify the jurisdiction of the contracting entity and of its parent company.
  3. Map the flows: where documents, prompts, answers, logs and backups go.
  4. Identify every call to an API outside the EU and decide whether it is acceptable for that type of data.
  5. Check who holds the encryption keys and who can access the logs.
  6. If SecNumCloud is required, check that the specific offering used (GPU compute, storage, API) is within the qualified scope.
  7. Update the record of processing activities, the impact assessment and the processor contracts.

Frequently asked questions about sovereign AI