Thales launches UK-hosted HSM & quantum-safe Luna 8

Thales has launched a UK-hosted version of its Luna Cloud Hardware Security Module service and introduced its Luna 8 hardware security module in Europe, the Middle East and Africa. The announcements expand its cryptographic security offerings for cloud users and organisations preparing for post-quantum security risks.

The UK-hosted cloud service is aimed at organisations that want cloud-based hardware security modules while keeping cryptographic key operations inside the United Kingdom. Customer keys will be generated, stored, used, backed up and destroyed in the UK, with two UK-based service instances intended to provide availability and disaster recovery within the country.

Hardware security modules, or HSMs, are used to generate, store and manage cryptographic keys that protect applications, identities, sensitive data and transactions. They play a central role in sectors such as finance, telecommunications, government and critical infrastructure, where rules on data handling and operational control can shape technology buying decisions.

The move comes as more organisations place sensitive workloads in cloud environments while facing scrutiny over data residency and sovereignty. For many regulated users, the question is not only where data sits, but also where the keys protecting that data are controlled and managed.

Thales said its Quantum and AI Threat Report, produced with S&P Global Market Intelligence, found that 36% of respondents said strong encryption and key management provide sufficient protection for sovereignty objectives regardless of physical location. The company argues that greater control over cryptographic operations can remove a barrier to cloud adoption for organisations that need local governance and resilience arrangements.

Paul Hampton, Data Protection Cloud Services Owner at Thales, said this reflects a broader shift in how organisations assess cloud services.

"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 organisations strengthen control over their cryptographic infrastructure while making it easier to adopt cloud technologies," he added.

Quantum shift

The second announcement centres on Luna 8, a new hardware security module that Thales is bringing to the EMEA market after an earlier launch in the United States. The product is designed to support organisations as they move towards post-quantum cryptography, an area of growing attention as businesses and public bodies assess how current encryption standards may be affected by advances in quantum computing.

Interest in that transition has grown alongside concern over so-called Harvest Now, Decrypt Later attacks, in which encrypted data is collected today in the expectation that future quantum systems could make it easier to decode. Thales said its 2026 Data Threat Report found this was the most cited risk and that 59% of organisations were prototyping and evaluating post-quantum cryptography algorithms.

Luna 8 is intended to store, protect and manage cryptographic keys across changing security requirements. The device is built around a cryptographic processor designed by Thales and is being assessed against standards including FIPS 140-3 Level 3 and EU Common Criteria.

The new HSM is available as a network appliance and is built to support both current and post-quantum algorithms. Thales also said the product is designed to let existing users migrate without changing current applications because it uses the same ancillaries and interfaces.

Todd Moore, Vice President of Data Security Products at Thales, said the launch reflects a change in how organisations plan their encryption strategy.

"The risks that quantum computing poses to encryption standards are unprecedented," said Todd Moore, Vice President of Data Security Products at Thales.

"Enterprises need to build post-quantum readiness through cryptographic agility. Powered by our custom-designed cryptographic processor, Luna 8 delivers high-performance support for both current and post-quantum algorithms while helping customers maintain control over security," he said.

Customer and analyst comments issued alongside the launch pointed to demand for HSMs that can support several environments and use cases while fitting into existing infrastructure planning.

"The new quantum-safe HSM from Thales enables us to support multiple secure environments while simplifying operations and making more efficient use of our infrastructure," said Jack Zhou, CIO at HKVAX.

"The flexibility to support multiple use cases, applications and business needs over time helps us maximise hardware investments. The combination of predictable performance and high availability gives our IT and security teams the assurance they need to operate efficiently and deliver consistent service to our stakeholders," Zhou added.

ABI Research also pointed to the operational demands facing organisations updating cryptographic systems.

"Integration, automation and scalability are increasingly important considerations for organisations modernising their cryptographic infrastructure," said Michela Menting, Vice President of Research at ABI Research.

"Luna 8 combines support for post-quantum cryptography with the flexibility organisations need to adapt as security requirements evolve," she added.

Taken together, the two launches show Thales focusing on two related pressures in the security market: where cryptographic control sits in cloud deployments, and how customers prepare for the longer-term impact of quantum computing on encryption.