Data Residency
The physical or geographic location of an organization's data, which can have implications for compliance with data protection laws.
Determines where data is stored and processed - in specific countries or regions - so that it remains subject to local jurisdiction and legal frameworks. Data-residency governance involves mapping data flows, deploying regional cloud instances, applying geo-fencing controls, and ensuring that cross-border transfers comply with adequacy decisions or standard-contractual clauses.
A European bank mandates that all customer PII be stored and processed only on EU-based servers. They configure their cloud provider to use Frankfurt and Amsterdam regions exclusively, implement geo-fencing rules to block access from non-EU IPs, and audit all transfers to ensure compliance with GDPR data-residency requirements.
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