German news reports that US authorities can access corporate data stored on servers in Frankfurt, despite their physical location in Europe.

Many European businesses mistakenly believe hosting data in the EU automatically protects it from foreign access. This isn't always true. If your AI solution, even a Microsoft 365 Copilot instance, processes client data via US-owned providers, that data might be accessible by US authorities. For regulated industries, this is a ticking GDPR and EU AI Act bomb.