- Despite concerns over data residency, UK businesses don’t know where they keep their data
- US residency and global hyperscalers are concerning to many businesses
- Hybrid, sovereign cloud and on-prem emerge as options
Many British businesses still aren’t certain where exactly their data is stored, even though sovereignty concerns and evolving regulations see them demanding more local options.
According to a new team.blue and names.co.uk study, two in three (67%) UK SMEs don’t know if their data is stored within the EU, and nearly three-quarters (73%) are worried about storing data in the US.
This is despite three in five (61%) noting increased concerns about where their data is actually stored.
Data residency worries
In the report, business leaders also shared unease about global hyperscalers like Microsoft and Google in relation to sovereignty and trust issues.
Data storage has evolved from being an IT team issue to a boardroom and reputational concerns, with company directors and customers driving change. Ongoing geopolitical tensions and global shifts also affected 40% of the respondents. Interestingly, more than half (55%) still noted no increased interest or concern.
“Data isn’t just information – it’s a fuel for the digital age. It deserves a safe and secure home that can future-proof your business in an uncertain world,” the report reads.
In the mid-term, 42% have no plans to switch despite rising concerns, and 30% are still undecided about switching providers. “Businesses aren’t yet ready to act on those concerns,” the report concluded.
In September 2025, a separate (non-UK-specific) study found that 100% of business leaders are reconsidering data residency, noting the emergence of hybrid cloud as a solution to combine often costly sovereign storage with some on-prem storage.
This names.co.uk report agrees that “local is favored,” either with UK suppliers, in-house servers or a combination of both. It also calls for further education and guidance for SMBs whose expertise may not be data residency.
“Without clear understanding of where their data sits, businesses risk falling behind competitors who can offer greater transparency and even exposing themselves to compliance or reputational setbacks,” names.co.uk Commercial Director Kelly Salter commented.
