TL;DR
European security frameworks like SecNumCloud include a unique ownership cap of 24%, testing legal sovereignty rather than security practices. This impacts cloud providers’ ability to operate within EU jurisdiction and influences AI data governance.
European cybersecurity frameworks are now emphasizing legal sovereignty, with the 24% ownership cap at the core of the SecNumCloud qualification. This rule directly tests who controls cloud providers and whether they are subject to non-EU laws, impacting the deployment of AI and sensitive data within Europe.
The SecNumCloud scheme, managed by France’s ANSSI, is a government-backed qualification that incorporates over 360 criteria across technical, organizational, operational, and legal domains. Unlike typical security certifications such as ISO 27001 or SOC 2, SecNumCloud explicitly tests ownership and control, with a specific focus on legal sovereignty.
A key component is the ownership rule: companies holding more than 24% of voting rights or influence by non-EU entities are ineligible. This arithmetic check is designed to prevent foreign control, ensuring compliance with EU sovereignty requirements. As of mid-2026, about ten providers have obtained or are in the process of obtaining SecNumCloud, including OVHcloud and Scaleway, with many more expected to follow.
While certifications like C5 from Germany and EUCS focus on security controls, they do not address sovereignty or jurisdiction directly. For example, a provider with a US parent company might hold a C5 attestation but still be subject to US laws like the CLOUD Act. In contrast, SecNumCloud’s ownership rule aims to eliminate this residual legal risk by restricting foreign influence.
Implications of the 24% Ownership Limit for Cloud Control
This ownership cap fundamentally changes how cloud providers are evaluated for sovereignty in Europe. It shifts the focus from just security practices to who ultimately owns and controls the infrastructure, directly impacting AI deployment, data sovereignty, and compliance. For European governments and businesses, this means increased assurance that their data remains under EU jurisdiction, reducing risks from foreign legal intervention.
However, it also complicates the landscape, as major US tech firms cannot easily meet the ownership threshold without restructuring control. This has led to creative joint ventures where control is shifted to European or non-US entities, such as Thales–Google S3NS or Capgemini–Orange Bleu, which operate within the ownership limits but still involve US technology.
Overall, the rule is a step toward more sovereign cloud services in Europe, but it also raises questions about the practical enforceability and the future of US-based providers in the European market.
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European Frameworks Emphasize Control and Jurisdiction
The European Union and member states have increasingly prioritized legal sovereignty in cloud and AI regulations. While standards like ISO 27001 and SOC 2 certify security practices, they do not address control or jurisdiction. The SecNumCloud scheme, introduced by France’s ANSSI in 2016, is unique in that it explicitly tests for ownership and legal immunity.
Earlier efforts focused on technical security, but recent legislation, such as the EU’s NIS2 directive, emphasizes control over critical infrastructure. The 24% rule is a novel approach, using a simple arithmetic check to enforce sovereignty, and is seen as a model for future regulation across Europe.
Major US cloud providers like AWS and Microsoft have responded by creating joint ventures with European firms, ensuring control remains within EU limits, and thus qualifying for SecNumCloud. This approach reflects a broader shift toward sovereignty-driven cloud procurement.
“SecNumCloud is designed to guarantee that control and sovereignty are maintained within the EU, with the ownership rule being a key element.”
— ANSSI spokesperson
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Unresolved Questions About Enforcement and Compliance
It remains unclear how strictly the ownership rule will be enforced as more providers seek certification. The practicalities of measuring ownership from cap tables can be complex, especially in joint ventures involving multiple entities. Additionally, the long-term impact on US-based cloud providers and their ability to operate within EU sovereignty frameworks is still evolving.
Questions also persist about how these rules will adapt to future developments in AI and data regulation, and whether the ownership cap will be complemented by other sovereignty measures.
cloud control and ownership verification software
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Next Steps for Cloud Providers and Regulators
Expect increased adoption of joint ventures and control restructuring by US cloud giants to meet the 24% ownership threshold. Regulatory bodies are likely to refine enforcement mechanisms and clarify compliance requirements, especially as more providers seek SecNumCloud certification.
European policymakers may extend sovereignty tests to other sectors, and the debate over jurisdiction versus security will intensify. The evolution of these frameworks will shape the future landscape of cloud and AI deployment within Europe.
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Key Questions
What exactly is the 24% ownership rule?
The 24% ownership rule is a legal sovereignty test used in the SecNumCloud qualification, which restricts foreign control by limiting non-EU ownership or voting rights in cloud providers to less than 24% individually or 39% collectively.
How does this rule affect US cloud providers operating in Europe?
US providers must restructure control, often through joint ventures or subsidiaries, to stay within the ownership limits and qualify for sovereignty certifications like SecNumCloud. They remain subject to US law but can demonstrate compliance with EU sovereignty criteria.
Does a security certification guarantee legal immunity?
No. Certifications like ISO 27001 or C5 focus on security practices but do not address jurisdiction or control. SecNumCloud’s ownership rule directly tests legal sovereignty, which is not covered by traditional security standards.
Will the 24% rule prevent foreign influence entirely?
It significantly limits foreign control but does not eliminate influence through complex ownership structures or legal arrangements. Enforcement and compliance will be critical to its effectiveness.
Source: ThorstenMeyerAI.com
