EU-hosted ≠ EU-owned: why 'EU region' doesn't escape the US CLOUD Act
MeliousAI_HQ · reddit · 2026-11-03
A Melious engineer explains why data-residency talk misses the point: the US CLOUD Act (18 U.S.C. § 2713) compels providers under US jurisdiction to disclose data regardless of storage location, so an 'EU region' of a US-controlled provider stays in scope. AI makes this worse — prompts are dense sensitive data, agents/RAG pull context automatically, and many 'European' tools are thin wrappers around US model APIs. Includes caveats (Microsoft France testimony, GDPR Art. 48, untested sovereign-cloud setups) and a 3-question vendor-selection checklist: ultimate parent company, full sub-processor list, and prompt minimization.
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