The image-hosting platform – which is widely used to make memes – was facing a fine over its use of children’s data.
Addressing the case publicly for the first time, Bill Ready says the tragedy “guides” the firm’s work.
It has not said how much the storage plans will cost UK users, only that they were part of a “gradual global rollout”.
It is the latest development in a privacy row which has pitted the UK against the tech giant and the Trump administration.
The rise has been driven by a sharp increase in the value of his electric car company Tesla.
The hackers tell the BBC they are sorry for their actions – but experts say it’s a practical rather than moral move.