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Thales News Release

Thales Launches UK-Hosted Cloud HSM to Help Customers Overcome Key Barrier to Cloud Adoption

September 14, 2026

  • Helps organisations meet UK sovereignty, data residency with data centers located in the United Kingdom and governance requirements while retaining control of cryptographic keys
  • UK-hosted Data Protection on Demand services provide high availability and disaster recovery entirely within the UK
  • Strengthens trusted digital infrastructure for organisations moving sensitive applications and data to the cloud

©Thales

Thales today announced the expansion of its Data Protection on Demand cloud marketplace with UK-hosted availability of its Luna Cloud Hardware Security Module (HSM) services. The launch enables UK organisations, including those in regulated and public-sector environments, to consume cloud-based HSM services through a UK-hosted model while maintaining control of the cryptographic keys that protect applications, digital identities, sensitive data and transactions.

Cryptographic keys play a fundamental role in protecting digital services, helping organisations secure everything from financial transactions and sensitive records to applications and digital identities. As more critical workloads move to the cloud, organisations increasingly need control not only over where their data is hosted, but also over where and how the keys protecting that data are managed.

Why UK-hosted cloud services matter

As organisations move more critical applications, data and digital services to the cloud, regulated sectors are placing greater emphasis on data residency, governance and sovereignty. For government, critical national infrastructure, telecommunications and financial services organizations in particular, uncertainty over where sensitive data and cryptographic keys are managed can become a barrier to cloud adoption.

Data sovereignty is not simply about physical location. It also concerns who controls access to sensitive data and cryptographic keys, and whether those controls remain aligned with legal, governance and operational requirements.

The Thales Quantum and AI Threat Report, conducted by S&P Global Market Intelligence, found that 36% of respondents said strong encryption and key management provide sufficient protection for their sovereignty objectives, regardless of physical location. The report also highlights the growing importance of reducing the amount of data held outside sovereign regions and strengthening cryptographic control as organisations adapt to increasingly distributed AI and cloud environments.

By extending Data Protection on Demand services with UK-hosted Luna Cloud HSM, Thales removes a common barrier to cloud adoption. Organisations can now access cloud-based HSM services while maintaining local control over key operations in support of data residency, governance and sovereignty requirements.

For the UK-hosted service, customer cryptographic keys will be generated, stored, used, backed up and destroyed in the UK. Supported by two UK-based Data Protection on Demand instances, the service will provide high availability and disaster recovery within the UK, helping organisations address both sovereignty and operational resilience needs.

Delivering cloud HSM with local control

Luna Cloud HSM provides cloud-based HSM capabilities for generating, storing, managing and using cryptographic keys across cloud and hybrid environments. It protects applications, sensitive data, digital identities, devices and transactions without the need to deploy and manage dedicated HSM infrastructure.

The service is built on trusted Thales Luna HSM technology and is supported by recognized validation programmes including FIPS 140 and SOC 2.

Strengthening trusted digital infrastructure

“Cloud adoption has moved beyond questions of where services are hosted. Organisations increasingly need to know who controls the cryptographic keys protecting their most valuable applications, identities and data, while also ensuring those services meet their resilience and operational requirements.” said Paul Hampton, Data Protection Cloud Services Owner at Thales. “By providing Luna Cloud HSM through a UK-hosted model, we are helping organizations strengthen control over their cryptographic infrastructure while making it easier to adopt cloud technologies.”

The launch forms part of Thales' broader commitment to strengthening trusted digital infrastructure in the UK and helping organisations adopt cloud technologies ensuring control over the cryptographic keys that secure them. It also provides a crypto agile foundation as organisations prepare for evolving security requirements, including the transition to post-quantum cryptography.