Cursor has become one of the most popular AI coding tools among developers worldwide. Its agentic capabilities, Privacy Mode, and strong developer experience make it compelling. But for developers and companies in the European Union, one question matters a great deal: Is Cursor GDPR compliant?

The honest answer is: it depends on your requirements — and for many EU professional contexts, there are unresolved compliance gaps.

The Short Answer

Cursor, developed by Anysphere, Inc. (a US company), processes your code on US-based AWS servers in all cases — even when you configure your own API key, even with Privacy Mode enabled. No EU data residency option exists for standard or professional plans. A DPA is available for enterprise customers through a commercial agreement, but there is no self-serve download.

For individual developers working on non-sensitive projects, this may be acceptable. For companies handling client source code, regulated data, or code that falls under EU AI Act scope, the legal picture is more complex.

What Privacy Mode Actually Does (And Doesn’t Do)

Cursor’s Privacy Mode is technically robust. When enabled, it provides:

Zero data retention with all model subprocessors (OpenAI, Anthropic, Google Vertex, Fireworks, etc.) — code is processed in memory only, not stored after the request
No plaintext code stored on Cursor’s servers — only obfuscated file paths for indexing
No training on your code
Dedicated server replicas — Privacy Mode requests route to isolated infrastructure where logging is disabled

This is a genuine technical guarantee, not just a policy statement. Cursor enforces it at the proxy level and for team accounts, it’s on by default and cannot be disabled by individual users.

What Privacy Mode does NOT do:

It does not prevent your code from transiting US-based AWS servers
It does not provide EU data residency
It does not make Cursor exempt from US surveillance law

The FISA 702 Problem

This is the compliance gap that Standard Contractual Clauses (SCCs) cannot fully solve.

Anysphere, Inc. is a US company. Under FISA Section 702, US intelligence agencies can compel US electronic communication service providers to disclose data. This applies to Cursor regardless of:

Whether Privacy Mode is enabled
Whether data is retained after processing
Whether SCCs are in place for EEA data transfers
Whether Cursor’s servers are in Frankfurt or Virginia

The European Court of Justice’s Schrems II ruling (2020) explicitly addressed this: SCCs are a valid transfer mechanism unless the law of the destination country prevents the importer from fulfilling its obligations. FISA 702 creates exactly this scenario.

For most day-to-day development this risk is theoretical. But for companies in regulated sectors, handling client data in source code, or subject to EU AI Act compliance requirements, it’s a real legal exposure that needs addressing.

DPA: Is One Available?

Cursor’s privacy policy acknowledges that for commercial customers where Cursor acts as a data processor, its use is governed by customer agreements — and a DPA framework exists. Cursor’s subprocessors list is published at trust.cursor.com.

However, there is no publicly downloadable standard DPA (unlike GitHub’s, which is a freely available PDF). Enterprise customers presumably receive a DPA through their commercial contract, but solo developers and small teams have no self-serve DPA available.

For GDPR Article 28 compliance, if your company uses Cursor for processing personal data embedded in source code, you need a signed DPA with Cursor. The path to getting one requires a commercial enterprise agreement.

EU Data Residency: Not Available

Cursor does not offer an EU data residency option on any plan. All requests hit Cursor’s AWS infrastructure in the US, even when Cursor uses European inference servers (like Fireworks’ EU endpoints) — those are performance optimizations, not data residency guarantees.

The privacy policy states: “your personal data may be transferred to our United States servers to other countries outside the EEA and the UK.” Transfer mechanisms described as “legally valid” (implying SCCs) without specifically naming them.

Practical Guidance for EU Teams

If you’re an individual developer:

Enable Privacy Mode (Settings → Privacy Mode) — this provides the strongest technical protection Cursor offers
Your main exposure is theoretical Schrems II / FISA 702 concern, not data being stored or used for training

If you’re a company processing client code:

You need a signed DPA — which requires a commercial Cursor Enterprise agreement
Assess whether your clients’ contracts allow processing via a US-based service provider
Consider whether EU AI Act requirements apply to your AI tool use

If you’re in a regulated sector (healthcare, finance, legal, government):

The absence of EU data residency and a self-serve DPA likely makes Cursor non-compliant with your organization’s data processing requirements
Consider EU-hosted alternatives

What Cursor Does Well

To be fair: Cursor’s Privacy Mode is technically among the strongest data protection implementations in the AI coding tool market. The dedicated server replicas, subprocessor zero-retention agreements, and team-level enforcement are genuine commitments. For US developers or EU developers working on non-sensitive projects, Cursor is an excellent tool.

The compliance gaps are structural — they stem from being a US company using US cloud infrastructure, not from weak security practices.

The EU-Native Alternative

Lurus Code is built by Lurus GmbH, a German company. Key differences relevant to GDPR:

EU-exclusive data processing — your code never leaves EU data centers, on any plan
No FISA 702 exposure — Lurus GmbH is not subject to US surveillance law
DPA available for all customers — not just enterprise
Never trains on your code — on any plan, regardless of settings
Works as a VS Code extension — no IDE switch required

For EU teams where GDPR compliance is non-negotiable, the structural difference matters more than any Privacy Mode toggle.

Key Questions to Ask

Before using any AI coding tool professionally in the EU, ask:

Where is the company incorporated? US companies are subject to FISA 702.
Where are servers located? EU-hosted ≠ EU company. A US company’s Frankfurt server is still subject to FISA 702.
Is a DPA available without an enterprise contract? GDPR Article 28 requires a written DPA for data processors.
What happens to code after processing? Zero retention (not just no-training) is the stronger guarantee.
Is EU data residency guaranteed contractually? Not just “some servers in Europe” but a binding commitment.

Summary

Question	Answer
Does Cursor offer a DPA?	Yes, for enterprise customers via commercial agreement
Is Cursor’s Privacy Mode technically robust?	Yes — zero retention, dedicated infra, not just a policy
Does Cursor process code on EU servers exclusively?	No — all requests hit US AWS infrastructure
Is Cursor subject to FISA 702?	Yes — Anysphere, Inc. is a US company
Is EU data residency available?	No — on any plan
Does Cursor train on code with Privacy Mode?	No

For individual use and non-sensitive projects: Cursor’s Privacy Mode provides strong practical protection. For EU companies with formal GDPR compliance requirements: the structural gaps (US company, US servers, no self-serve DPA) require careful legal assessment.

Sources: cursor.com/privacy, cursor.com/security, trust.cursor.com — verified April 2025.

Is Cursor GDPR compliant? What EU developers need to know