Why Data Storage Location Matters More Than You Think – The Nordic Advantage

Data storage is a fundamental business function that ensures all information remains secure. It is often outsourced to an external provider, which is why companies need to be increasingly cautious about where their data is actually stored.

Summary

Data storage ensures business security but is often outsourced to the cloud, raising concerns about its physical location.
Key concerns include data sovereignty, security risks, latency, and accessibility.
Nordics are an ideal location due to strict laws, stability, fast connections, and sustainability.
Media Tailor stores customer data primarily in Finnish data centers for security and compliance.

The term data storage refers to digitally storing documents and files in a storage system for future use and backup purposes.

This is a basic precaution against unexpected data loss and cyberattacks.

Especially in the media industry, where the volume of different types of data, including digital files, is constantly growing, it is important to ensure that data is stored securely.

Lately, data storage has become a hot topic as businesses are becoming more aware of where their data is truly being stored.

This article explores what companies need to consider (especially regarding cloud storage) and why the Nordics are one of the best regions for data storage.

Cloud storage is the new norm

Many companies outsource data storage to a third party, a practice known as remote storage. The most common form of this is cloud storage, where data is stored on servers provided by an external service provider.

This raises a critical question: Where exactly is the data stored?

With cloud storage, third-party providers manage, host, and secure the data within their infrastructure. These providers ensure the data remains available at all times.

Cloud storage allows organizations to store, access, and manage data without owning or maintaining physical data centers. This shifts costs from a capital expenditure (CAPEX) model to an operational expenditure (OPEX) model.

Cloud storage is scalable, meaning companies can increase or decrease their storage capacity as needed.

In other words, the cloud is not some intangible concept. It consists of physical hardware, owned by an external entity. Data is often distributed across multiple servers and sometimes even across different locations.

Data Storage Nordics.

Why does it matter where my company’s data is stored?

In today’s world, the location of your data storage is crucial. Whether you’re a business owner, an IT manager, or an everyday consumer, knowing where your data is stored significantly impacts security, compliance, and data governance.

Here are some key reasons why knowing your data’s location matters:

1. Data sovereignty

Data sovereignty refers to the laws and regulations governing data storage based on its physical location. For example, the EU’s GDPR imposes strict requirements on personal data processing.

GDPR is one of the world’s strictest data protection laws. It regulates how personal data is handled within the EU and restricts data transfers outside the EU unless the recipient country offers adequate data protection.

This is why many companies prefer data centers within the EU, as it minimizes legal risks.

Storing data in a country with weak data protection laws can expose it to misuse. In contrast, a strictly regulated environment ensures stronger and more reliable data security.

2. Security & risk management

The physical location of data affects its security. Data centers in politically unstable regions or areas prone to natural disasters pose higher risks. Additionally, cybersecurity measures vary by country.

A nation with strong cybersecurity regulations offers better protection against hacking and data breaches.

3. Latency & performance

The physical location of data affects application speed and performance. The closer the data is to end-users, the lower the latency and the faster the loading times.

For global businesses, distributed data storage can optimize performance across different regions, but companies must also consider local data protection laws and regulations.

4. Control & accessibility

Data storage location determines who has access to the data. For example, data stored in the United States may be subject to the Patriot Act, which grants authorities broad access to information.

Similar laws exist in other countries, such as China. In contrast, Europe has stricter data privacy laws, making it a more attractive region for data storage.

Why the Nordics are an optimal location for data storage

In Europe, the largest data centers are located in the FLAP region (Frankfurt, London, Amsterdam, and Paris). This region emerged due to its high population density.

However, in recent years, the Nordics have gained prominence as a strategic data storage hub.

The Nordics have attracted major investments from hyperscale providers. Denmark hosts Google and Apple data centers, and Sweden is home to Facebook’s expanding operations. Finland is seeing Google increase its storage capacity significantly.

Why have the Nordics become an attractive region for data storage?

The Nordic countries are politically and environmentally stable. Data protection laws are strict, ensuring companies can trust the security of their data.

The Nordics have a well-developed fiber-optic infrastructure, enabling high-speed connections to other European and global markets. New sea cables link the Nordics to North America and Asia, which improves the efficiency of global data traffic.

The region’s cool climate allows data centers to be cooled energy-efficiently without significant additional costs. This reduces energy consumption and lowers the carbon footprint compared to southern regions.

Additionally, the Nordics benefit from abundant renewable energy sources, including hydropower, wind power, and a growing share of solar energy.

Electricity prices are relatively low compared to other parts of Europe, making data center operations more cost-effective. Furthermore, governments in the region support data center development through tax incentives and energy policies.

Data Storage Nordics.

Media Tailor: secure data storage in the Nordics

Choosing a data storage location is a long-term investment.

As businesses become increasingly aware of security, sustainability, and cost-efficiency in data storage, the location of their data matters more than ever.

As highlighted above, storing data in the Nordics is the best choice for companies seeking a secure, stable, and compliant cloud storage solution – free from geopolitical and cybersecurity risks.

At Media Tailor, we have always stored our own and our customers’ data within Europe.

We primarily use Finnish data centers, along with a few carefully selected facilities across Europe. In the future, we plan to further expand our reliance on Finnish data centers.

What does this mean for our customers?