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What is data localization?

Data localization is the practice of ensuring that data is stored in the region from which it originated. This means that when a company collects data in a particular country, that data is stored in that country instead of being transferred to another country for processing.

Since the Internet has made it possible to chase data across the globe in a matter of seconds, the issue of data localization is becoming increasingly important to regulators, privacy advocates and consumers.

It is important to distinguish between data localization and data residency. Data residency describes the location where data is stored. Data localization is the compliance with these specific data residency requirements.