What is data sovereignty?

Data sovereignty refers to the legal and jurisdictional control over data based on the location where it is stored or collected. It means that data is subject to the laws and regulations of the country in which it resides, and governments have authority over how that data is handled within their borders. This principle is particularly important in the context of cloud computing and global data storage, where data may cross international borders.

Since 2018, the EU’s General Data Protection Regulation (GDPR) has enforced strict data sovereignty rules. Under the GDPR, personal data of EU residents must be stored and processed securely, with specific guidelines on transferring it outside the EU. If data is sent to countries without adequate protections, companies must implement legal safeguards, such as Standard Contractual Clauses or Binding Corporate Rules, to maintain compliance.