Data Localisation and the Balkanisation of the Internet

Abstract

Unrestricted international data flow is of critical importance to economies and people globally. Data localisation requirements interrupt the global flow of data by restricting where and how they may be stored, processed or transferred. Governments are increasingly imposing such requirements to protect the individual rights of their citizens, along with sentiments of national sovereignty and aspirations of economic benefit. However, data localisation requirements are likely to lead to the balkanisation of the Internet, which may threaten those very objectives. This Analysis article provides and introduction to and an overview of the likely advantages and drawbacks of data localisation requirements following the Snowden revelations. Economic, security and individual rights questions are addressed and illustrated with the recent Russian data localisation law.