US diplomats ordered to oppose data sovereignty laws

As detailed in Reuters, the Trump administration has directed U.S. diplomats to actively lobby against international efforts by countries to regulate how American technology companies manage foreign citizens' data. This directive argues that such data sovereignty laws pose a significant threat to the advancement of artificial intelligence (AI) services and broader technological innovation.

The internal diplomatic cable, signed by Secretary of State Marco Rubio, asserts that data localization mandates and similar regulations would disrupt global data flows, increase costs and cybersecurity risks, and limit the development of AI and cloud services. It also warns that these laws could expand government control, potentially undermining civil liberties and enabling censorship. Diplomats are instructed to counter these regulations and track proposals promoting data sovereignty, while also advocating for the Global Cross-Border Privacy Rules Forum to facilitate trusted international data flows.

This move by the U.S. government underscores its historical opposition to stringent data regulation, aiming to bolster American AI companies amidst increasing global scrutiny of Big Tech's data practices. The directive comes as regions like the European Union implement comprehensive legislation such as the GDPR and the AI Act, highlighting a growing tension between national data control initiatives and the U.S. stance on free data flows for technological advancement.

Source: TechCrunch