The largest cloud providers and data stores, including Amazon Web Services, Microsoft, Google Cloud, and Meta, have warned the federal government against enforcing data localization rules.
In an April discussion paper [pdf], Home Affairs questioned whether Australia “need[ed] an explicit approach to data localization.”
At the time, it was noted that “several nations have data localization laws in place, while others are adopting legislation, frequently to limit the unsafe movement of personal information across borders.”
However, it also believed that if localization requirements were to be explored or started, they would need to be balanced.
Large data holders like Meta and the big cloud providers are categorically opposed to regulations for data localization.
Particularly Meta cautioned that the need for data localization was frequently connected to purported monitoring systems.
In a submission [pdf], Meta stated that “Local data storage needs obviously have broader ramifications for the state of an open, global internet.”
“Personnel and data localization policies, like those in China, Turkey, Vietnam, and India, are frequently designed to make it easier to monitor or censor the online activities of citizens and violate their constitutionally protected rights to privacy, freedom of expression, access to information, and due process.
According to us, the location of your data in the Microsoft cloud is an architectural decision made when creating apps rather than a security control for data. [pdf]
In effect, your data is no more secure in the Sydney data centre than it is in the Microsoft data centres in Washington, Auckland, or Paris with the proper security procedures in place across the Microsoft worldwide network of data centre regions.
“The market is still largely misinformed about this topic, and there are still misconceptions about concerns like insider threats and requests for law enforcement access.
“If there are any concerns in this area, we would appreciate the chance to inform decision-makers on these issues.”
