How do data residency, data sovereignty and data localization differ?

Data residency, data sovereignty, and data localization are terms that are often used in the context of data storage and compliance with laws and regulations. It is important to understand how these terms differ from each other to ensure that you do not violate regulations and avoid fines.

Data residency refers to the geographic location where data is physically stored. Data sovereignty refers not only to the location where data is stored, but also to the laws and regulations that govern the data at that location.

In contrast, data localization requires that all data generated within a country’s borders remain within those borders. Data localization is applied specifically to the creation and storage of personal data and is distinct from data residency and data sovereignty, which apply to all types of data.

In summary, data residency, data sovereignty, and data localization differ as follows:

• Data residency refers to the geographic location of the data.
• Data sovereignty refers not only to the location of the data, but also to the laws and regulations to which the data are subject at that location.
• Data localization requires that all data generated within a country’s borders remain within those borders. It is mainly applied to the creation and storage of personal data.

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