Zscaler & Schwarz Digits launch EU sovereign cloud security

Zscaler and Schwarz Digits have formed a strategic partnership to offer a sovereign cloud security service in Europe. The service is hosted in Germany and operated by STACKIT.

The joint offering combines Zscaler's Zero Trust Exchange platform with Schwarz Digits' sovereign cloud platform, STACKIT, to create a Zero Trust Secure Access Service Edge service for customers across Europe. It is intended to address rising cyber threats linked to attackers' use of artificial intelligence while meeting European data sovereignty requirements.

The service is aimed at organisations with strict security and compliance needs, including those in public administration, defence, financial services and healthcare. It is designed to support hybrid workforces and align with expectations around operational resilience and supply-chain security.

Demand for technology hosted and operated within Europe has risen as companies respond to regulatory requirements including NIS2, DORA and the AI Act. Those rules have pushed cybersecurity higher up the corporate agenda, particularly for businesses handling sensitive data or critical operations.

Under the partnership, the Zscaler platform is being deployed in Schwarz Digits' data centres in Germany. STACKIT will host and operate the service, and the joint offer will also cover deployment, management and support.

Schwarz Digits is the IT and digital division of Schwarz Group, whose businesses include major retail operations in Europe. Digital sovereignty is central to its strategy, with cloud, cybersecurity, data, artificial intelligence, communication and workplace services among its core activities.

Zscaler, a US cybersecurity company listed on Nasdaq, is known for its zero trust security products. Its platform is used by large businesses, critical infrastructure operators and government bodies to secure users, applications, data and devices across distributed networks.

Regulatory pressure

The agreement reflects a broader shift in the European technology market, where customers increasingly want cloud and security services that keep data within the region and reduce reliance on non-European infrastructure. Demand has grown alongside geopolitical concerns, tighter regulation and more frequent cyberattacks.

For customers, the appeal of a locally hosted security service may lie in both compliance and control. European organisations in heavily regulated sectors often face detailed requirements on where data is stored, how services are managed and which legal frameworks apply to their operations.

At the same time, security vendors have been adapting their products to address threats that are becoming faster and harder to detect. The new service is intended to help customers strengthen cyber resilience as attackers use AI to increase the speed and sophistication of attacks.

Christian Müller, Chief Executive Officer of Schwarz Digits, outlined the company's view of the partnership. "Technological independence begins with infrastructure. Through this partnership, we are taking network security to a new level: we are evolving existing security architectures and focusing on high-performance identity verification. For our customers, this means even stronger protection against cyberattacks," Müller said.

Zscaler described the agreement as part of its European strategy and its push to support customers that need both strong security controls and EU data residency.

"In an era of AI-driven cyber threats, a modern Zero Trust SASE solution is the only effective way to protect sensitive enterprise data," said Misha Kuperman, Chief Reliability Officer of Zscaler. "Our partnership with Schwarz Digits is a concrete demonstration of our long-term commitment to Europe: Together, we help our customers eliminate their attack surface and prevent the lateral movement of threats, while still maintaining compliance with European regulations through EU data residency. This enables the highest level of security while aligning with European digital sovereignty regulations."

The partnership also signals how cybersecurity suppliers and infrastructure providers are seeking closer ties as customers look for integrated offers rather than stitching together separate networking, security and hosting contracts. In sectors where outages or data breaches can trigger regulatory scrutiny, suppliers that can package those elements together may gain an advantage.

Bernd Wagner, Chief Security Officer of Schwarz Digits, said the combined offer was intended to meet those expectations in both the public and private sectors. "Our customers in the private and public sector need secure, resilient IT infrastructure without compromising on digital sovereignty. By uniting the expertise of two technology leaders, we make this a reality: Zscaler provides an advanced Zero Trust SASE architecture to counter AI-driven cyberattacks, while Schwarz Digits ensures a sovereign cloud infrastructure through STACKIT. This helps to ensure all data remains in the EU and is protected against third-party access," Wagner said.