GitHub will soon allow its cloud customers to store their code data in the European Union (EU), part of a broader effort by the technology industry to meet regulatory requirements and customer expectations for data protection, particularly in sectors that involve sensitive information, such as the public sector, finance, and healthcare.
Starting October 29, GitHub said all its enterprise cloud customers will be able to choose which EU region to store all their code in, though the company did not specify which region it will use or whether customers will be able to choose. GitHub’s parent company, Microsoft, has more than a dozen Azure cloud regions across the block.
However, given that all GitHub Enterprise Cloud customers currently have their data stored in the United States, this move is likely intended to appease at least some customers and bring their data closer to home. Early adopters of the new data residency program include German manufacturer Zeiss and Volkswagen’s software subsidiary Cariad.
GitHub already allows customers to choose where to store their data as part of its self-hosted enterprise server offering, and the latest announcement extends this functionality specifically to cloud customers.
Digital Sovereignty
As Europe’s digital sovereignty agenda expands, the bloc seeks to tighten its grip on its own infrastructure, technology, data and cybersecurity, and many U.S. companies are seeking to demonstrate to customers across the ocean that they are willing to not only protect their data but also keep it closer to home, with more granular controls.
Microsoft has been promoting data localization efforts for its Azure customers, and Amazon, Google, and Oracle have made similar noises. Infrastructure companies aside, companies like Zoom and TikTok are also moving data closer to their European customers. All to appease regulators and users on the ground.
GitHub’s European data residency effort officially launches in six weeks, but the company has confirmed that it will introduce similar support in other regions, including Australia, Asia, and Latin America, though no time frame has been given yet.
“Customer demand for regional data residency is growing, not just in Europe but globally,” Shelly McKinley, GitHub’s chief legal officer, told TechCrunch. “(But) there’s no specific date yet. We’ll listen to this initial launch and learn from it to figure out how quickly we can do this.”
In fact, this launch is designed to encourage organizations to either switch from their own hosting offerings or sign up for GitHub Enterprise Cloud entirely, knowing that they can store their company code locally. In fact, GitHub offers cloud migration tools for those looking to move from enterprise servers or competing code management platforms.
There are several other benefits to storing data locally, including reducing data transfer latency. The closer a company is to the code, the faster data transfers (at least in theory). This can be beneficial in the current global AI gold rush, especially when it comes to developing AI-enabled software.
In that sense, GitHub launched its AI Copilot product for enterprises earlier this year, which is entirely available via the cloud (with a limited version available to self-hosted customers), so you could argue that GitHub is indirectly using data residency to attract more customers to its AI product.
McKinley says data residency plans have more to do with “customer preferences” than specific regulatory guidance. In fact, the EU doesn’t have comprehensive data residency rules, but some laws indirectly influence where organizations choose to store their data. The GDPR, in particular, has strong rules for cross-border data transfers. Incoming EU AI laws also intersect with all of this, including data governance provisions for certain types of AI systems. Ultimately, when companies have more control over where their data is stored, it’s easier to manage their data.
“It’s really a customer preference issue, where they want to keep their core code local,” McKinley said. “And the ability to really leverage GitHub Copilot has less to do with data residency, but more to do with the ability to leverage everything the cloud has to offer.”
