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Brazil, Spying, and Decentralizing Forces in Data Storage

Where policy, emerging markets, and data storage intersect–Brazil may take measures, in response to NSA activities, to ensure that certain data is stored locally. And, they are big enough for the market to take note.

The legislation, which is being written by a lawmaker in Rousseff’s Workers’ Party and is scheduled to be completed next week, would force foreign-based internet companies to maintain data centres inside Brazil that would then be governed by Brazilian privacy laws, officials said.

Internet companies operating in Brazil are currently free to put data centres wherever they like. Facebook Inc., for example, stores its global data in the United States and a new complex in Sweden.

Rousseff believes that the change would help shield Brazilians from further U.S. prying into their activities, and she is considering urging other countries to take similar measures when she speaks at the United Nations General Assembly later this month, a senior Brazilian official told Reuters.

“This would be a turning point for these companies,” the official said, naming Facebook, Google Inc. and Microsoft Corp. as examples, although they would not be the only companies affected. “If you want to work here, you will have to obey our rules.”

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