US tells diplomats to lobby against foreign data sovereignty laws

In Brief Posted: 6:56 AM PST · February 25, 2026 Image Credits:Mandel Ngan / Getty Images Rebecca Bellan US tells diplomats to lobby against foreign data sovereignty laws The Trump administration has ordered U.S. diplomats to lobby against countries’ attempts to regulate how American tech companies handle foreigners’ data, arguing that data sovereignty laws threaten the advancement of AI services and technology, Reuters reported, citing an internal diplomatic cable. The cable, signed by U.S. Secretary of State Marco Rubio, says such laws would “disrupt global data flows, increase costs and cybersecurity risks, limit AI and cloud services, and expand government control in ways that can undermine civil liberties and enable censorship,” according to the report. The cable pushes diplomats to “counter unnecessarily burdensome regulations, such as data localization mandates.” It also orders them to track proposals that would promote data sovereignty laws, and urged diplomats to promote the Global Cross-Border Privacy Rules Forum, an international group that claims to enable “trusted data flows globally through international data protection and privacy certifications.” The order comes as countries around the world increase scrutiny of how Big Tech companies and AI firms are using their citizens’ data.

The European Union has led the charge on this front with laws like the GDPR, the Digital Services Act and the AI Act, seeking to curb tech companies’ control and exploitation of user data and hold them accountable. The Trump administration has historically opposed such regulatory approaches, and this order reinforces that position as the government seeks to boost U.S. AI companies. The U.S. State Department did not immediately return a request for comment. Topics AI, data privacy, data sovereignty, eu ai regulation, Europe, GDPR, Government & Policy, United States October 13-15 San Francisco, CA Save up to $680 on your pass before February 27.Meet investors. Discover your next portfolio company. Hear from 250+ tech leaders, dive into 200+ sessions, and explore 300+ startups building what’s next. Don’t miss these one-time savings. REGISTER NOW Newsletters See More Subscribe for the industry’s biggest tech news TechCrunch Daily News Every weekday and Sunday, you can get the best of TechCrunch’s coverage. TechCrunch Mobility TechCrunch Mobility is your destination for transportation news and insight.

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