What the US CLOUD Act Means for Your Business Website
The US CLOUD Act gives US authorities the power to access data held by US companies, regardless of where that data is stored. Here's what that means if your website is built on a US platform.
If you run a UK business, you probably assume your website data is protected by UK law. After all, your customers are in the UK, your business is registered in the UK, and you comply with UK GDPR. But there's a piece of US legislation that could change everything — and most small business owners have never heard of it.
What is the CLOUD Act?
The Clarifying Lawful Overseas Use of Data Act (CLOUD Act) was passed by the US Congress in 2018. Despite its reassuring name, it grants the US government a significant power: the ability to compel any US-based company to hand over data, regardless of where in the world that data is physically stored.
This means that if your website is built on a platform owned by a US company — such as Wix (US-listed), Squarespace (New York), or WordPress.com (Automattic, San Francisco) — your data could be subject to US government requests, even though you're a UK business serving UK customers.
What does the CLOUD Act actually allow?
Under the CLOUD Act, US law enforcement agencies can issue warrants to US companies requiring them to produce data. The critical point is that this applies regardless of where the data is stored. A server in London, Frankfurt, or Sydney — it doesn't matter. If the company controlling that data is a US entity, the US government can demand access to it.
This is not theoretical. In June 2025, senior Microsoft employees admitted to the French senate that they could not guarantee the sovereignty of European data held on their platforms. This was a remarkable admission from one of the world's largest technology companies, and it applies equally to smaller US companies that provide website building services.
"But I'm in the UK..."
You might think UK GDPR protects you. And it does — to a point. UK GDPR sets rules about how your data should be handled, and it gives your customers rights over their personal information. But here's the problem: US law and UK law can conflict.
When a US company receives a CLOUD Act warrant, it faces a legal dilemma. Comply with US law and potentially breach UK GDPR, or comply with UK GDPR and potentially face US legal penalties. In practice, US companies will comply with US law — they have to. Their directors, their shareholders, and their operations are subject to US jurisdiction.
This isn't about trust. It's about the legal reality of where a company is incorporated.
What about UK GDPR?
UK GDPR remains one of the strongest data protection frameworks in the world. It requires companies to handle personal data responsibly, to be transparent about data processing, and to give individuals control over their information. But UK GDPR cannot override US federal law when it comes to companies that are subject to US jurisdiction.
The only way to ensure your trade business website data is fully governed by UK law is to use a provider that is itself a UK company — one that is not subject to the CLOUD Act or any other foreign data access legislation.
What can you do about it?
The good news is that this is a problem with a straightforward solution. When choosing a website platform for your business, consider:
- Where is the company registered? A UK-registered company is subject to UK law, not the US CLOUD Act.
- Where are the servers? UK-based servers mean UK data protection law applies to your data at rest.
- Who can access your data? With a UK provider, no foreign government can compel the company to hand over your data.
- Where does your money go? Choosing a UK provider supports the UK tech economy.
Practical steps for small businesses
You don't need to become a data sovereignty expert. Here are three practical things you can do today:
- Check where your current website provider is based. Look at their "About" page or terms of service. If they're a US company, your data is subject to the CLOUD Act.
- Ask your provider directly: "Can foreign governments legally request access to my data?" If they can't give you a clear "no", that tells you something.
- Consider switching to a UK-based platform. Site Seedling is a UK-registered company with UK-based servers. No US legislation can compel us to hand over your data.
The CLOUD Act isn't going away. In fact, as geopolitical tensions evolve, the importance of data sovereignty is only growing. Making a smart choice now about where your website lives is one of the simplest ways to protect your business for the future.