Microsoft pushes for German-only data storage amidst espionage tensions

The Snowden leaks, and subsequent ire directed toward American intelligence community, is expected to create lucrative financial opportunities for German telecom companies. The Information Technology and Innovation Foundation predicts that U.S. data centers will lose between $21 billion and $36 billion dollars worth of revenue from foreign clients by 2016. Analysts at research firm Forrester predict an even grimmer outlook for American data facilities, reporting potential losses of over $180 billion. For the small and medium-sized European tech firms in position to snatch this business, these international tensions are a potential boon.

The cloud in court
Microsoft Germany's push for a national data centers also comes at the heels of a recent court decision pertaining to international data storage. A U.S. District Judge ordered Microsoft to provide information stored on an Irish server to the Department of Justice. The tech giant responded by holding itself in contempt and planning for the appeals process, according to Data Center Dynamics. It is no surprise that the European tech industry is considering ways to further separate sections of the Internet. Microsoft's appeal process is sure to raise interesting questions about data sovereignty, such as determining jurisdiction over a networks being accessed by a remote console server from across a border.

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