Impact of the EU Data Act on Cloud Services

As part of the EU’s data strategy, Regulation on Harmonized Rules on Fair Access and Use of Data (Data Act ) became applicable on September 12th, 2025. 

The Data Act aims to create a fairer data market in which customers gain more control over their data and can switch easily between service providers. For cloud service providers (CSPs) this means new contractual, transparency and governance obligations. 

Key obligations for CSPs

1. Switching between data processing services

The Data Act obliges CSPs to remove all pre-commercial, commercial, technical, contractual, or organizational barriers that might prevent customers from switching to another service provider or to an on-premise solution. 

In practice, the contractual terms governing the use of cloud services must allow switching and clearly describe the switching process. CSPs must also publish the technical information needed for data portability on their website and provide support for customers during the transition period. 

2. Egress fees

To further support switching, the Data Act prohibits all switching charges, including data egress fees, effective from January 12th, 2027. Until that date, any charges imposed by CSPs for switching must be transparently disclosed in the contract and may not exceed the costs “directly linked” to the switching process.

3. International governmental access and transfer

Complementing the existing rules on data transfers under the GDPR, Chapter VII of the Data Act introduces rules for international governmental access and transfer of non-personal data. In practice, CSPs must include transparent information on their websites about the jurisdiction their infrastructure is subject to and the concrete safeguards it has implemented to prevent unlawful international governmental access to the data they process.

UpCloud’s compliance with the EU Data Act

UpCloud’s services are designed with interoperability and customer autonomy at the core. 

Customers retain the freedom to port their data and switch to another provider at any time through our APIs. Should the customer prefer to initiate a formal switching procedure, UpCloud’s Terms of Service set out a framework for the transition, under which UpCloud will support customers’ exit plans and ensure business continuity and data security. With zero-cost egress, there are no concerns over transfer fees.

UpCloud maintains a strict stance on international governmental access requests to data. We do not disclose any data to governmental authorities except where required under the laws of Finland. All requests from foreign authorities are redirected to the appropriate Finnish authorities in accordance with national law and established mutual legal assistance frameworks. This ensures that any possible disclosure is done lawfully and subject to proper judicial oversight.

Further details regarding jurisdiction and about our measures to prevent international governmental access can be found here. For additional  questions, contact our team.