Atlassian Isolated Cloud in 2026: Why US law still reaches your EU data
Isolated but not immune? With Atlassian phasing out Data Center and embracing the cloud, not even their 'Isolated Cloud' can shield regulated teams from US laws such as the CLOUD Act. What can you do about it? Read on to find out.
Table of contents
Atlassian Cloud options for regulated industries as Data Center EOL
Atlassian Isolated Cloud
Atlassian Government Cloud
Why is Atlassian Isolated Cloud not 100% secure
EU-hosted doesn’t mean US-proof
Atlassian Isolated Cloud alternative: EU Sovereign Cloud
Cloud shift, sovereignty drift
TL;DR
Atlassian’s upcoming Isolated Cloud improves technical isolation for regulated teams, but because Atlassian is subject to U.S. laws like the CLOUD Act it can still be compelled to disclose customer data without notice. Only a fully EU-owned “sovereign cloud” provider can deliver true jurisdictional data sovereignty.
Atlassian Cloud options for regulated industries as Data Center EOL
With Data Center headed to end of life on March 28, 2029 (and key sales limits starting earlier), Atlassian is clearly steering customers toward cloud as the default future.
For regulated and high-security teams that can’t use a standard multi-tenant cloud, Atlassian’s answer isn’t true on-prem continuity. Instead, it’s specialized, Atlassian-managed cloud paths like Government Cloud and the single-tenant Isolated Cloud planned for 2026.
Atlassian Isolated Cloud
Atlassian is launching Isolated Cloud in 2026 and released Government Cloud in early access in 2025 to cater to regulated companies needing secure, isolated environments beyond standard cloud. These options act as "private cloud" alternatives, marketed as premium solutions for enterprises avoiding multi-tenant risks.
Atlassian Government Cloud
Atlassian Government Cloud, now generally available, targets U.S. agencies with FedRAMP Moderate authorization for Jira, Confluence, and Jira Service Management, ensuring U.S. data residency. Isolated Cloud provides single-tenant virtual private clouds with dedicated compute, storage, and networking, plus advanced security from Atlassian Guard Premium.
Why is Atlassian Isolated Cloud not 100% secure
Atlassian is a software company with Australian roots and a U.S. legal home. This means Atlassian remains subject to US laws like the CLOUD Act, which can compel disclosure of customer data—including from single-tenant Isolated Cloud environments— regardless of isolation or data residency.
These requests often include gag orders preventing customer notification, and Isolated Cloud's design focuses on tenant isolation from other customers, not shielding from Atlassian's legal obligations or US jurisdiction.
US authorities can compel Atlassian, as a US-based company, to provide data from its cloud services (including isolated cloud) under laws like the CLOUD Act or national security letters, often without notifying the customer.
Although Atlassian's Isolated Cloud offers single-tenant isolation and enhanced controls, it remains subject to US jurisdiction as it is Atlassian-managed. Therefore, it does not provide full protection against US government requests.
EU-hosted doesn’t mean US-proof
Hosting in an EU-based cloud (e.g., via AWS Frankfurt or Azure West Europe for Atlassian regions) keeps data residency in the EU, subjecting it to GDPR and EU laws that impose stricter limits on third-country access, unlike US laws.
However, if Atlassian staff (US/AU-based) can access it for support or operations, US authorities could still demand that access. All in all, data location alone doesn't eliminate processor jurisdiction risks.
Atlassian Isolated Cloud alternative: EU Sovereign Cloud
While Atlassian’s Isolated Cloud adds technical isolation, it remains under US jurisdiction. That means that US authorities can still request data, even without customer notice, under laws like the CLOUD Act. The real problem isn’t the location of the data, but who controls the platform.
That’s where Easy Redmine EU Sovereign Cloud comes in. It offers full data and processor sovereignty—by ensuring that both the infrastructure and the service provider are EU-based, EU-owned, and outside US legal reach.
For teams requiring GDPR-grade protection without compromise, the EU Sovereign Cloud is the solution that Atlassian's Isolated Cloud promises but may not fully address.
Cloud shift, sovereignty drift
With Jira Data Center heading for end of life, many teams are being pushed toward Atlassian’s cloud solutions. But even with options like Isolated Cloud, you're still accepting US jurisdiction and the legal risks that come with it.
Contact us to explore a safer, compliant alternative to Atlassian Cloud.
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