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U.S. Diplomats Urged to Oppose Global Data Sovereignty Laws in Big Tech Strategy

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The Trump administration has issued an order through an internal diplomatic cable to U.S. diplomats to actively oppose international efforts to implement data sovereignty laws. According to a report from Reuters, this directive argues that such regulations could have detrimental effects on AI advancement and technology by:

  • Disrupting global data flows.
  • Increasing costs and cybersecurity risks.
  • Limiting AI and cloud services.
  • Expanding government control, potentially undermining civil liberties and enabling censorship.

The cable, signed by U.S. Secretary of State Marco Rubio, instructs diplomats to fight against mandates like data localization and to track emerging proposals for data sovereignty. Instead, it advocates for the promotion of the Global Cross-Border Privacy Rules Forum, which promotes trusted data flows through international protection and privacy certifications.

This move comes in response to global trends, especially from bodies like the European Union, which have implemented laws such as the GDPR, Digital Services Act, and AI Act to regulate how tech companies handle data, curbing their influence and ensuring accountability. Historically, the Trump administration has opposed such regulatory frameworks, reinforcing its position to bolster U.S. AI companies. The U.S. State Department has not commented on this report.