Algeria has rapidly tightened its data-localization and sovereignty rules, forcing cloud and IT services operating in the country to adapt. With no AWS, Azure, or Google Cloud region on Algerian soil, the question of where data lives — and under whose legal authority — carries more practical weight here than in markets served by hyperscaler infrastructure. These regulations create both compliance challenges and a protected market opportunity for in-country cloud providers.
What the Law Actually Requires
Algeria’s data-sovereignty regime rests on several overlapping legal instruments.
Law 18-07 (Personal Data Protection). Enacted in June 2018, Algeria’s first comprehensive data protection law only came into full force on August 10, 2023. It strictly limits cross-border transfers of personal data: transfers abroad require prior approval by the national data authority (ANPDP) and may only go to countries with an “adequate” level of protection. Absent adequacy, transfers are permitted only under narrow exceptions — explicit data subject consent, legal necessity, or vital interests. Crucially, business data, intellectual property, and non-personal corporate data are not subject to these restrictions. Only data that identifies individuals triggers the transfer rules.
Executive Decree 22-39 (Cloud Licensing). Issued on January 10, 2022, this decree requires any entity offering cloud-computing services in Algeria to obtain authorization from the telecom regulator (ARPCE) and operate infrastructure according to national standards. ARPCE regulations further require public-cloud operators to establish infrastructure on Algerian territory and host data locally.
Presidential Decree 25-320 (Data Governance Framework). Signed at the end of 2025, this landmark decree establishes a national data governance framework for public-sector data — mandating a national data catalog, classification registry, and secure interoperability standards. The decree clarifies the roles of the High Commission for Digitization (strategy), CNSSI (security), and ANPDP (privacy compliance). Government data classified at the highest sensitivity tiers must remain on Algerian servers.
Sectoral Regulations. Beyond cross-cutting laws, sector-specific rules add further requirements. The Bank of Algeria’s 2025 Payment Services Provider regulation explicitly requires licensed payment agents to host platforms domestically with no offshore servers and maintain all transaction data onshore. Algeria’s e-commerce law mandates that local online businesses host their sites in Algeria. Healthcare patient records are classified as sensitive personal data under Law 18-07, requiring strong safeguards for any international transfer.
The Practical Impact: Three Enterprise Scenarios
A multinational with Algerian operations. A company using Azure or AWS hosted in Europe for Algerian employee and customer data can continue doing so — provided the hosting country has an ANPDP adequacy decision. France (as an EU/GDPR member) qualifies. The company needs proper data processing agreements, clear disclosure to data subjects, and documented processing records. This scenario requires documentation, not infrastructure changes.
An Algerian fintech startup. A digital wallet company licensed under the Bank of Algeria’s 2025 PSP rules cannot rely on a foreign public cloud for core banking functions — all payment transaction data must remain onshore. Options include using Algérie Télécom Cloud for the regulated data tier while leveraging international cloud for non-regulated workloads (development, anonymized analytics), or building a hybrid architecture with in-country infrastructure for regulated data and flexible international services for everything else.
A government IT contractor. Under Decree 25-320, any application built for an Algerian ministry must assume public-sector data is classified and requires in-country hosting. Algérie Télécom has been expanding its data-center footprint for this purpose — in 2023 it inaugurated a new data center in Constantine with an integrated enterprise cloud platform. Government tenders increasingly favor local cloud services with appropriate security certifications.
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The Market Opportunity
Algeria’s localization laws are creating a protected market that only in-country providers can serve. Several forces are converging to make this opportunity significant.
Government digitization. Algeria plans over 500 e-government and digitalization projects in 2025-26, virtually all requiring cloud and data-center infrastructure that meets sovereignty norms. This represents a captive market for compliant local providers.
Data center growth. Algeria’s data-center infrastructure market was approximately $95 million in 2025 and is projected to exceed $227 million by 2035, driven by surging demand from government and enterprises for secure local hosting. New data-protection laws and sovereign cloud policies are compelling investment in Algerian facilities.
Banking sector demand. Algeria has approximately 19 major commercial banks undergoing accelerated digital transformation. With strict data-hosting requirements now in force for fintech and payment services, the banking sector represents a meaningful and growing cloud market for compliant providers.
Global sovereign cloud momentum. Worldwide spending on sovereign cloud infrastructure is projected to reach $80 billion in 2026. AWS launched its European Sovereign Cloud in Brandenburg, Germany in early 2026 — a physically and logically separate instance from global regions, operated exclusively by EU-resident staff. Microsoft and Google have built similar sovereign cloud partnerships across Europe and the Middle East. Algeria’s regulatory framework creates the same conditions that justified sovereign cloud investments in these markets.
What International Cloud Providers Should Do
The first hyperscaler to establish an Algerian region or fully compliant local partnership will capture a disproportionate share of this locked-down market. Practical strategies include partnering with Algerian carriers or data-center operators through joint ventures, deploying hybrid architectures (such as AWS Outposts or Azure Stack) that keep sensitive data on local infrastructure while leveraging global cloud for other workloads, and actively engaging with ANPDP and CNSSI to secure compliance certifications. With no hyperscale cloud region currently in Algeria — the closest AWS regions are in South Africa and the Middle East — the compliance gap is also a competitive gap waiting to be filled.
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Decision Radar
| Dimension | Assessment |
|---|---|
| Relevance for Algeria | High — directly addresses the regulatory landscape every enterprise operating in Algeria must navigate |
| Action Timeline | Immediate — Law 18-07 is already in force, Decree 25-320 is active, and PSP rules apply now |
| Key Stakeholders | CTOs and CIOs at multinationals with Algerian operations, fintech founders, government IT contractors, cloud service providers, Algérie Télécom, Bank of Algeria compliance officers |
| Decision Type | Strategic — determines cloud architecture and vendor selection decisions |
| Priority Level | Critical — non-compliance carries legal risk under active enforcement |
Sources & Further Reading
- CMS Expert Guide — Algeria Data Protection
- Digital Policy Alert — Algeria 2025 Edition
- Algeria Data Governance Decree — We Are Tech Africa
- Algeria Fintech Regulation — Startup Researcher
- Algeria DC Market — DC Market Insights
- AWS Global Infrastructure
- AWS European Sovereign Cloud Launch
- Sovereign Cloud Trends — IT Pro
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