Consistent with the growing discussion of digital sovereignty in the Caribbean region and worldwide, greater attention is being placed on the establishment of data embassies. In response, the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) published a study on the subject. We chat with Demetris Herakleous, an Associate Economic Affairs Officer at ECLAC, on the prospect of Caribbean countries establishing a data embassy, including: the differences between a data embassy and a data centre; the possibility of a regional data embassy being established; and some of the security considerations, especially in light of data sovereignty concerns.

  

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In an era where data is as strategically important as the data owners, countries are beginning to rethink how they protect their digital assets. One increasingly discussed concept is the data embassy — a bold approach to digital resilience and sovereignty.

A data embassy is a high-security data centre located in a foreign country but operating under the laws and jurisdiction of the home country. Under international law—specifically, an extension of the Vienna Convention on Diplomatic Relations—this data remains subject to the exclusive jurisdiction of the home country. Hence, much like traditional diplomatic embassies, data embassies enjoy a special legal status through bilateral agreements, where the data or data centre is physically abroad, but legally at home.

The most widely cited example is Estonia, which established a data embassy in Luxembourg in 2018. The initiative emerged from Estonia’s deep commitment to digital governance after experiencing significant cyberattacks in 2007. By storing critical government data — including registries and essential services — in a legally protected overseas facility, Estonia ensured that the state could continue functioning even if its domestic infrastructure were compromised.

Cognisant of the growing calls across the Caribbean region for greater emphasis on data and digital sovereignty, in December 2025, the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) published a study entitled “Data embassies: An innovative approach to strengthening digital resilience in the Caribbean.” The report examined key components and issues that would need to be addressed if the region were to establish data embassies and thus could serve as an important reference for the participating countries.

 

Demetris Herakleous

 

Introducing our guest

Demetris Herakleous is an Associate Economic Affairs Officer at the United Nations Economic Commission for Latin America and the Caribbean (ECLAC), where he coordinates the Caribbean Working Group of the eLAC Digital Agenda for Latin America and the Caribbean. His research examines digital sovereignty and AI governance, with a focus on policy and institutional frameworks that enable trusted and resilient digital transformation.

 

 

Insights into our conversation

Although a data embassy is a technical feat—the servers, infrastructure, firewalls, security measures, etc.— to physically and securely move data from one country to another, what makes a data embassy different from a data centre is the diplomatic framework in which it operates. As Demetris emphasised throughout our conversation, the technical solutions already exist, but the successful implementation of a data embassy hinges on the treaties or country-level agreements that are established.

Through the study, ECLAC appears to be suggesting that Caribbean countries consider a regional approach to data embassies, which, in the first instance, could be housed in the region to improve the digital resilience of the participating countries. Furthermore, as digital transformation accelerates across the region, the question is no longer whether data is strategic. It is how well we are prepared to protect it when the unexpected happens.

Below are key questions that drove our conversation with Demetris.

  1. Please explain what a data embassy is and why this study was conducted.
  2. What should be some of the considerations and distinctions in deciding to store data in a commercial data centre versus a data embassy?
  3. If a data embassy is established in the Caribbean region to serve Caribbean countries in the first instance, where could it be located, and what would be the elements of the supporting framework that must be established that countries would need to address?
  4. There are several digital infrastructure vulnerabilities, from the limited availability of robust data centres and limited international and terrestrial connectivity, to cybersecurity threats and climatic and other hazards. Addressing these issues will require considerable resources and upkeep. How could these be addressed to improve the resilience of Caribbean countries and the region as a whole?
  5. What is the perceived scope for a regional data embassy construct, versus bilateral agreements between two countries?
  6. The report suggests implementation of the “3-2-1 Resilience Rule”. What does that entail?
  7. What are some of the recommendations made in the report that Caribbean countries ought to consider?
  8. Having published the report, which might next steps for ECLAC?

 

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Select links

Below are links to some of the organisations and resources that were mentioned during the episode, or might otherwise be useful:

 

 

Images credit:  ECLAC;  DC Studio (Freepik);  Lukáš Jančička (Pixabay);  Freepik

Music credit: The Last Word (Oui Ma Chérie), by Andy Narrell

Podcast editing support: Mayra Bonilla Lopez