Data Residency
The physical or geographic location of an organization's data, which can have implications for compliance with data protection laws.
Definition
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.
Real-World Example
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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