The Impact Of The EU Data Act On Data Processing Services Agreements

What is the Data Act ?

The EU Data Act (Regulation (EU) 2023/2854), applicable from September 12, 2025, introduces a comprehensive legal framework aimed at enhancing data portability, interoperability, and minimizing dependency on individual service providers throughout the digital economy. Among its most impactful provisions are the mandatory switching rights under Chapter VI, which regulate cloud switching and impose significant obligations on providers of "data processing services."

While fixed-term contracts remain lawful, service providers, including IaaS, PaaS and SaaS, are now required to reassess the structure and content of these agreements in light of the Data Act's new obligations. This regulation introduces harmonized rules that affect the way providers interact with their clients, compelling them to ensure that contractual terms reflect fair, reasonable, and non-discriminatory conditions. As a result, many existing agreements may need to be adapted