US tells diplomats to lobby against foreign data sovereignty laws | TechCrunch
Summary
The Trump administration has directed U.S. diplomats to oppose foreign data sovereignty laws, claiming they threaten AI advancement and global data flows.
Why It Matters
This directive highlights the ongoing tension between national regulations on data privacy and the interests of U.S. tech companies. As countries implement stricter data laws, the U.S. government's stance may influence international relations and the global tech landscape, particularly regarding AI development and data management.
Key Takeaways
- The U.S. government is actively lobbying against foreign data sovereignty laws.
- These laws are viewed as threats to AI services and global data flows.
- The directive aims to counter regulations perceived as burdensome to tech companies.
In Brief Posted: 6:56 AM PST · February 25, 2026 Image Credits:Mandel Ngan / Getty Images Rebecca Bellan US tells diplomats to lobby against foreign data sovereignty laws The Trump administration has ordered U.S. diplomats to lobby against countries’ attempts to regulate how American tech companies handle foreigners’ data, arguing that data sovereignty laws threaten the advancement of AI services and technology, Reuters reported, citing an internal diplomatic cable. The cable, signed by U.S. Secretary of State Marco Rubio, says such laws would “disrupt global data flows, increase costs and cybersecurity risks, limit AI and cloud services, and expand government control in ways that can undermine civil liberties and enable censorship,” according to the report. The cable pushes diplomats to “counter unnecessarily burdensome regulations, such as data localization mandates.” It also orders them to track proposals that would promote data sovereignty laws, and urged diplomats to promote the Global Cross-Border Privacy Rules Forum, an international group that claims to enable “trusted data flows globally through international data protection and privacy certifications.” The order comes as countries around the world increase scrutiny of how Big Tech companies and AI firms are using their citizens’ data. The European Union has led the charge on this front with laws like the GDPR, the Digital Services Act and the AI Act, seeking to curb tech companies’ control and exploitation of use...