Debunking Myths: The 24% Rule And AI Cloud Sovereignty Certifications
AIThis post was created with the assistance of artificial intelligence (AI).

TL;DR

This article clarifies the actual significance of the French SecNumCloud ownership cap, debunks myths around the 24% rule, and explains the differences between sovereignty certifications. It highlights why these standards matter for European data control and legal jurisdiction.

European cybersecurity standards are often misunderstood, particularly the French SecNumCloud framework’s unique ownership cap of 24%. This rule is a key legal sovereignty test, and recent discussions clarify its purpose and impact for cloud providers operating in Europe.

SecNumCloud, created by France’s ANSSI in 2016, is a government-issued qualification that certifies not just security practices but legal sovereignty. The core requirement is that companies controlling the service must have no more than 24% ownership by non-EU entities, checked via a simple arithmetic cap table.

Unlike other certifications such as ISO 27001 or BSI C5, which verify operational security, SecNumCloud explicitly tests ownership and jurisdiction. It mandates EU data residency, EU legal control, and immunity from non-EU extraterritorial laws, making it a unique legal sovereignty benchmark.

As of mid-2026, only a handful of providers, including OVHcloud and Scaleway, hold an active SecNumCloud qualification. This requirement is mandatory for hosting sensitive French public-sector data and is being extended to critical infrastructure under the Cloud au Centre doctrine.

At a glance
analysisWhen: published April 2024, with ongoing deve…
The developmentThe article examines the legal sovereignty test embedded in France’s SecNumCloud framework, focusing on the 24% ownership rule and its implications for cloud providers and data sovereignty.
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Implications of the 24% Ownership Cap for Cloud Providers

The 24% ownership rule is a practical and measurable way to ensure legal sovereignty over data in European cloud services. It directly influences how international companies structure their control and ownership, affecting their ability to operate within French and broader European markets. This rule challenges U.S.-based hyperscalers, who must adjust ownership structures or partner with European firms to meet sovereignty standards. It underscores the shift toward legal control as a key component of data sovereignty, beyond traditional security certifications.

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European Sovereignty Certifications and Their Legal Focus

European cloud sovereignty standards have evolved to address the legal and political risks of data control. Certifications like ISO 27001 and BSI C5 focus on operational security, but do not address jurisdiction or ownership. SecNumCloud, by contrast, explicitly tests ownership and legal control through its 24% cap, reflecting a broader move toward embedding sovereignty into certification frameworks.

While certifications like C5 require disclosure of jurisdiction, they do not prevent control by foreign entities. SecNumCloud’s unique approach makes it a harder barrier for non-EU owners to control sensitive data, emphasizing legal immunity and sovereignty.

“The 24% rule is a simple yet powerful arithmetic test that directly measures ownership control, making it a unique legal sovereignty benchmark.”

— Thorsten Meyer, AI security expert

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French SecNumCloud certified cloud providers

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Remaining Questions About the 24% Rule and Future Adoption

It is still unclear how widely the ownership cap will influence international cloud providers’ strategies beyond France. The exact impact on U.S.-based hyperscalers attempting to meet sovereignty requirements remains uncertain, especially regarding their ability to restructure ownership or form European joint ventures. Additionally, the potential for other European countries to adopt similar sovereignty tests or standards is still developing.

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Upcoming Developments in European Cloud Sovereignty Standards

Expect further adoption of SecNumCloud or similar sovereignty frameworks across Europe, especially as the European Union advances its Data Governance Act and related legislation. Major providers are likely to pursue partnerships or restructuring to meet the 24% ownership threshold. Meanwhile, legal debates about sovereignty, jurisdiction, and control will continue to shape policy and certification standards in the coming months.

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cloud sovereignty compliance tools

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Key Questions

What is the main purpose of the 24% ownership rule in SecNumCloud?

The 24% ownership rule is designed to ensure legal sovereignty by preventing non-EU entities from exerting control over cloud services hosting sensitive European data.

Does holding a SecNumCloud qualification mean a provider is immune from US or other foreign laws?

No. SecNumCloud certifies control and sovereignty within the EU context. Providers like AWS with US parent companies remain subject to US laws, such as the CLOUD Act, despite the qualification.

Can non-European providers meet the SecNumCloud requirements?

Yes, but they must structure ownership so that no individual or group outside the EU exceeds the 24% cap, and they must comply with EU residency and legal controls.

Will the 24% rule apply outside France?

Currently, the rule is specific to France’s SecNumCloud framework, but similar sovereignty standards are being discussed at the European level, potentially influencing broader policies.

What is the difference between security certifications and sovereignty certifications?

Security certifications like ISO 27001 verify operational security practices, while sovereignty certifications like SecNumCloud test ownership, jurisdiction, and control to ensure legal sovereignty over data.

Source: ThorstenMeyerAI.com

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