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Switzerland Wants To Become the World's Data Vault
wiredmikey writes "Business for Switzerland's 55 data centers is booming. They benefit from the Swiss reputation for security and stability, and some predict the nation already famous for its super-safe banks will soon also be known as the world's data vault. For example, housed in one of Switzerland's numerous deserted Cold War-era army barracks, one high-tech data center is hidden behind four-ton steel doors built to withstand a nuclear attack — plus biometric scanners and an armed guard. Such tight security is in growing demand in a world shaking from repeated leaks scandals and fears of spies lurking behind every byte."
Switzerland's problem is that it's grown wealthy off the back of dirty money.
That is, it's banks have obtained large amounts of money from everyone from Nazi looters through to money stolen by common theft, through to the much more benign tax avoiders and evaders.
This money has been used to invest and bankroll Swiss firms, which is why Switzerland has been able to grow other major firms like Nestle over the years and is what allows Switzerland to have disproportionate corporate punch in the world.
Most nations are willing to turn a blind eye most of the time because although it's a problem for them, a rational cost/benefit analysis has to be performed and most of the time it's more hassle trying to argue a political solution and implement it than it's worth.
But since the recession that's changed, countries are desperate for every penny they can find, a few hundred million or a few billion owed to the tax authorities is a non-issue in boom times relative to the lower hanging fruit they can go after back home instead but when the financial crisis hit and as it has dragged on for so long all the low hanging fruit have been plucked, and suddenly even mere hundreds of millions held abroad are worth going after.
So at this point financially hit countries like the US, UK and much of Western Europe now put the Swiss in their sites, and it becomes an ultimatum for the Swiss at this point - start giving up the criminally held tax, start giving up the tax evaders, or we'll put hefty financial transaction taxes on monetary transfers in and out of your country, or we'll start picking through your nation's companies with a very fine comb looking for fines we can leverage against them.
This is why the Swiss have allowed their banks to start submitting to US tax deals and so forth because the alternative is much less pleasant (e.g. http://www.bbc.co.uk/news/business-20907359).
Swiss data centres would be no different - they'd be perfectly solid and safe until they become a measurable problem to a major Western nation or two and as with Swiss banks you'd see a slow erosion from complete secrecy, to allowing warrant based requests for data, to general access to information deals and support for cease and desist orders.
At best therefore they'd be a temporary solution. But if they were willing to host the likes of The Pirate Bay I'd wager that solution would be very temporary indeed given the lobbying power of the MPAA/RIAA and the priority with which the likes of the US would hence pursue such an issue with the Swiss.
Because no country existing outside of a dystopic novel has anything comparable to the NSA. Inb4 China: China's massive espionage ends at their borders, outside there it's just the usual, they don't even monitor WoW despite the risk of gnome terrorists.
There are no less than 3 separate sources within the People's Republic of China that hammer on one of my servers 24x7x365 trying to break their way in. They've been at it for a very, very long time.