GitHub, the popular code hosting platform, has announced plans to allow its cloud customers to store their code data in the European Union (EU). This move comes as companies are increasingly focused on meeting regulatory requirements and addressing customer expectations regarding data protection, particularly in industries such as finance, healthcare, and the public sector where sensitive information is involved.
Starting from October 29, GitHub enterprise cloud customers will have the option to select an EU region to store all their code. While the company has not specified which region(s) will be used or whether customers will have the ability to choose, GitHub’s parent company, Microsoft, has numerous Azure cloud regions across the EU.
The introduction of data residency in the EU is likely to appease customers who want their data stored closer to home. Currently, all GitHub Enterprise Cloud customer data is stored in the U.S. German manufacturer Zeiss and Volkswagen’s software subsidiary Cariad are among the early adopters of this new data residency program.
It is important to note that GitHub already allows customers to choose where their data is stored through its self-hosted enterprise server product. The recent announcement extends this capability to cloud customers.
The push for digital sovereignty in Europe has led many U.S. companies to emphasize data localization efforts. These initiatives aim to give the EU greater control over its infrastructure, technology, data, and cybersecurity. Companies such as Microsoft, Amazon, Google, and Oracle have been working to convince customers that they are committed to data protection and are willing to store data within the EU.
Other tech companies, including Zoom and TikTok, are also moving data closer to their European customers in an effort to comply with regulations and meet user preferences.
While GitHub’s European data residency program will go into effect in six weeks, the company has confirmed plans to introduce similar support for other regions in the future. These regions may include Australia, Asia, and Latin America, although no timeframe has been disclosed.
GitHub’s chief legal officer, Shelley McKinley, stated that customer demand for local data residency is increasing worldwide, not just in Europe. McKinley explained that GitHub is committed to listening and learning from the initial launch to determine how quickly it can introduce data residency in other regions.
The launch of data residency in the EU aims to encourage organizations to either transition from the self-hosted product or subscribe to GitHub Enterprise Cloud. Companies will have the assurance that they can choose to store their code locally. GitHub also offers migration tools for companies looking to switch from the enterprise server or other code-management platforms.
In addition to data localization benefits, such as lowering data-transfer latency, having data stored closer to the company can help accelerate data transfer. This can be particularly advantageous in the current AI-driven landscape, especially for AI-assisted software development.
GitHub recently introduced AI Copilot, a product for enterprises that is fully available through the cloud. This feature may indirectly incentivize more customers to utilize GitHub’s AI product by offering data residency as an added benefit.
McKinley clarified that the data residency plans are primarily driven by customer preference rather than a specific regulatory directive. While the EU does not have blanket data residency rules, certain laws, such as the General Data Protection Regulation (GDPR), indirectly influence where organizations choose to store data. The upcoming EU AI Act also intersects with these considerations and includes data governance provisions for specific AI systems. Ultimately, companies find it easier to manage data when they have greater control over its storage location.
The data residency initiative aligns with customer preferences to store their code, referred to as their “crown jewels,” in the region. McKinley also highlighted the advantage of leveraging GitHub Copilot, which is unrelated to data residency but benefits from being able to utilize all the features the cloud platform offers.
In conclusion, GitHub’s decision to offer data residency in the EU reflects the growing importance of data protection and customer preferences in the technology industry. By providing customers with the option to store their code locally, GitHub aims to address regulatory requirements and enhance data privacy. This move aligns with broader efforts to promote digital sovereignty and offers benefits such as reduced data-transfer latency and improved access to AI-driven software development tools. As customer demand for local data residency increases globally, GitHub plans to expand its support to other regions in the future.
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