Zscaler and Schwarz Digits announced a strategic partnership on July 28, 2026, to deliver a sovereign Zero Trust Secure Access Service Edge (SASE) platform for organizations across Europe. The collaboration combines Zscaler’s cybersecurity technology with Schwarz Digits’ European sovereign cloud infrastructure, STACKIT, which is operated from data centers in Germany. This joint offering addresses the rising demand for digital sovereignty alongside strict cybersecurity requirements imposed by regulations such as NIS2, DORA, and the AI Act. The solution is designed to protect mission-critical operations in public administration, defense, financial services, and healthcare against AI-driven cyber threats while ensuring data remains within the EU.

The partnership aims to solve the complex balancing act faced by European enterprises that must meet operational resilience and supply-chain security expectations without compromising on performance or legal compliance. By deploying the Zscaler security platform within Schwarz Digits’ data centers, the companies provide a holistic approach that covers deployment, management, operation, and support. This ensures that customer data and operations are protected against lateral threat movement and third-party access, aligning with European digital sovereignty regulations.

Christian Müller, CEO of Schwarz Digits, emphasized that technological independence begins with infrastructure. He stated that the partnership evolves existing security architectures by focusing on high-performance identity verification, providing stronger protection against cyberattacks for their customers.

Misha Kuperman, Chief Reliability Officer at Zscaler, noted that modern Zero Trust SASE solutions are essential for protecting sensitive enterprise data in an era of AI-driven threats. He described the partnership as a demonstration of Zscaler’s long-term commitment to Europe, enabling customers to eliminate their attack surface while maintaining compliance through EU data residency.

Bernd Wagner, CSO of Schwarz Digits, highlighted the need for secure IT infrastructure that does not compromise digital sovereignty. He explained that the union of Zscaler’s advanced architecture and Schwarz Digits’ sovereign cloud ensures all data remains in the EU, protected against unauthorized access.

Partnership Details

What the Numbers Show

The partnership reflects a structural shift in the European cybersecurity market where regulatory compliance is driving infrastructure decisions. With regulations like NIS2 and DORA elevating cybersecurity to a board-level priority, the demand for solutions that simultaneously address threat prevention and data sovereignty is increasing. This collaboration indicates that hyperscale security providers are adapting their delivery models to host services on local, sovereign infrastructure to capture mission-critical sectors such as defense and public administration.

The Schall Law Firm, a national shareholder rights litigation firm, announced it is investigating Zscaler, Inc. for potential violations of federal securities laws. The investigation focuses on whether the company issued false or misleading statements or failed to disclose pertinent information to investors. This legal scrutiny follows a significant drop in Zscaler's share price attributed to underwhelming financial guidance.

On May 27, 2026, a report by CNBC highlighted that Zscaler's shares "tumbled more than 23%" after the cloud security company provided guidance for current-quarter revenue. The company projected revenue between $875 million to $878 million, which fell short of the $879 million analysts were seeking, according to LSEG data. Consequently, shares of Zscaler opened down more than 30% on the same day.

The Schall Law Firm represents investors globally and specializes in securities class action lawsuits and shareholder rights litigation. The firm is currently assessing whether investors have grounds to pursue legal action against Zscaler regarding the disclosed information.

Key Financial Details

The following table outlines the financial guidance that preceded the share price decline:

Investors who suffered losses in Zscaler are encouraged to contact Brian Schall of the Schall Law Firm to discuss their rights free of charge. The firm can be reached at 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, or by phone at 310-301-3335. Additionally, inquiries can be made via the firm's website or by email.