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Home » Cloud Data Ownership: 70% US, 30% China Dominance

Cloud Data Ownership: 70% US, 30% China Dominance

Rebecca Fraser by Rebecca Fraser
May 6, 2025
in Infotainment
Reading Time: 2 mins read
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Introduction to Cloud Computing and Data Security Concerns

Cloud computing has transformed data storage and management, shifting it from traditional asset ownership to a shared infrastructure model. This evolution impacts not only businesses but also raises significant questions about data ownership and security on a global scale.

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Dominance of American and Chinese Firms

Key Players in the Cloud Computing Space

The landscape of cloud computing is predominantly shaped by American and Chinese companies. Major American players include:

  • Amazon Web Services (AWS)
  • Google Cloud Platform
  • Microsoft Azure

In contrast, leading Chinese firms in this sector consist of:

  • Huawei
  • Tencent
  • Alibaba

These companies play pivotal roles in the global cloud infrastructure, affecting how data is stored and managed across borders.

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Influence of Geopolitics on Cloud Infrastructure

The presence of these tech giants raises critical considerations about data sovereignty and security. Many countries host data centers from these companies, creating dependencies that could be leveraged in geopolitical tensions.

The Global Distribution of Data Centers

Research Findings on Data Center Ownership

A recent study by researchers from the University of Oxford and Finland’s Aalto University sheds light on the geography of cloud infrastructure ownership. This investigation reveals distinct patterns in data center distributions:

  • Countries like Italy and Poland predominantly utilize American-owned cloud infrastructure.
  • In contrast, nations such as Germany, the UAE, and the UK exhibit a mix of both American and Chinese ownership, with Chinese data centers comprising 14% to 40% of their infrastructure.

Variability by Region

A notable aspect of the research is the presence of Chinese cloud infrastructure in developing regions. Countries in Latin America and parts of Asia show a higher inclination towards Chinese services, often motivated by cost-effectiveness and an interest in the Chinese model of internet governance.

Implications of Localized Data Storage

Government Regulations and Corporate Policies

Organizations frequently prefer to host their data locally due to government or corporate policies mandating data center proximity. This trend aims to ensure legal recourse and compliance with local regulations. However, it complicates the narrative surrounding ownership and the origin of the technology in use.

Risks Associated with Ownership

Questions arise regarding the security implications of relying on foreign infrastructure. While data sovereignty policies can provide legal protections, the underlying tech ownership remains crucial. Historically, concerns have primarily centered around Chinese technology; however, American dominance may also come under scrutiny given evolving geopolitical dynamics.

Potential for Cloud Infrastructure Weaponization

The Threat Landscape

The ownership structure of cloud infrastructure poses risks that could potentially be weaponized. While a total disruption scenario is improbable, the authors of the research suggest that the repercussions would be extensive, affecting critical sectors such as finance, transportation, and personal technology.

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Strategic Choices of Third Countries

The report indicates that the decisions made by third countries regarding cloud infrastructure are influenced by trade relations and strategic government choices. Countries are increasingly urged to evaluate their dependencies and the implications of foreign ownership of their data centers.

Attempts at Cloud Sovereignty

European Initiatives

In response to growing concerns, European governments have sought to establish a degree of cloud sovereignty. This ambition arises from skepticism about both Chinese and American providers, aiming to create a more secured and controlled local alternative.

Effectiveness of Current Strategies

Despite these initiatives, the researchers characterize the progress toward cloud sovereignty as ineffective thus far, signaling a need for increased urgency and innovation in addressing data security and ownership concerns.

Final Thoughts

The evolving landscape of cloud computing, shaped by geopolitical dynamics, presents both opportunities and challenges. As businesses and governments navigate these complexities, understanding ownership, security risks, and localized storage remains vital for informed decision-making.

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Tags: chartcloud availability zonescountriesdata centersnational originprovidershare
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Rebecca Fraser

Rebecca Fraser

Rebecca covers all aspects of Mac and PC technology, including PC gaming and peripherals, at Digital Phablet. Over the previous ten years, she built multiple desktop PCs for gaming and content production, despite her educational background in prosthetics and model-making. Playing video and tabletop games, occasionally broadcasting to everyone's dismay, she enjoys dabbling in digital art and 3D printing.

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