Personal data is a highly valuable asset. The competition for data control has become a global rivalry in which access to, and dominance over, these resources result in significant economic, strategic, and geopolitical advantages. The strategic role of data is particularly relevant for the European Union, which seeks to balance incentives for innovation with the preservation of its democratic values and digital sovereignty. In this context, it must ensure clear and robust data management policies that safeguard not only privacy but also provide protection against third‑party abuses, thereby guaranteeing the sovereignty and security of its Member States and citizens. To address the complexity of the digital environment, this study focuses on the analysis of the European Union legislation on data management between 2016 and 2024. It also seeks to understand the potential consequences of inadequate data management in an international environment marked by digital interdependence and geopolitical disputes, using the case of Portugal and its Armed Forces. This study adopts a qualitative methodological approach, combining documentary analysis and semi‑structured interviews. The guiding research question is: “What is the impact of European Union data management policies on its digital security?”. To narrow the scope, two sub‑questions were derived: (1) “Which factors affect the European Union’s digital security?”; and (2) “Do these policies affect the Portuguese Armed Forces?”. The results indicate that European Union data management policies have directly influenced its digital security and have promoted an ethical and innovation‑driven approach that protects citizens’ rights and democracy. However, to respond to rapid technological change and growing threats, it is necessary to strengthen international cooperation, invest in emerging technologies, and promote literacy, ensuring a resilient and inclusive digital environment.