Switzerland banking on safe haven label to become world’s data vault

Switzerland, facing an erosion of the banking secrecy laws that helped make it the world’s banker, is now touting its reputation as a safe and stable haven to become a global data vault. More and more companies are flocking to the wealthy Alpine country to stock data in an era of increasing espionage and hacking, and the Swiss are reaping the benefits of paranoia. Thanks to Switzerland’s long-held banking secrecy tradition, the country enjoys a global reputation for security and privacy. But amid international pressure, the country is being forced to shed the protective shield that has made its banks so attractive, and has agreed within the next two years to automatically exchange account details with other countries.

Data storage is the new Eldorado for Switzerland. It’s a real boom.

Franz Grueter, managing director of Green.ch, a leading data storage firm that has posted 30 percent annual growth since it was set up in 1995

While Swiss banks are suffering, the country’s data storage companies are booming. With its 61 data centres, tiny Switzerland is currently Europe’s fifth largest data hub, according to the Data Center Map website. In the wake of revelations from former US intelligence contractor Edward Snowden of widespread snooping by the National Security Agency, they are touting Switzerland’s cherished reputation to draw clients from around the globe. Swiss laws on the issue are one of the most restrictive in the world: Personal data is defined as a “precious good” that can under no circumstances be handed over to governments or authorities without authorisation from a judge. This has been a magnet for companies such as Multiven, an IT services firm that quit California’s Silicon Valley in 2009 for Zurich.

We relocated to Switzerland in anticipation of this future and to lay the ground work for it. We foresee a future whereby individuals, businesses and organisations worldwide will seek to store their digital assets (intellectual property, inventions, trade secrets, etc.) in Switzerland.

Multiven chief Deka Yussuf

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