In view of the accelerating pace of digital transformation, data have become the backbone of state functionality, economic development and disaster response. For the small island developing States of the Caribbean, this shift presents both opportunities and risks: while digital systems enable modernization and resilience, they remain acutely vulnerable to natural disasters, cyberattacks and connectivity failures. Against this backdrop, the concept of “data embassies” has emerged as an innovative solution to ensure government continuity and digital sovereignty. Data embassies provide another layer of security in addition to domestic infrastructure by hosting critical national data abroad under treaty-based legal protections. Drawing on the experiences of other countries, notably Estonia’s pioneering model, and adapting them to the Caribbean context, this study examines the technical, financial, legal and governance pathways for implementation. The analysis underscores the urgency of building resilient digital infrastructure, harmonizing data protection laws and forging regional partnerships. For Caribbean policymakers, businesses and international partners, the findings highlight not only the feasibility of data embassies but also their potential to transform digital vulnerability into resilience and state survival.