What does "data sovereignty" refer to?

Data sovereignty refers to the principle that data is governed by the laws and regulations of the country in which it is stored. This concept has gained prominence with the rise of cloud computing and globalization, where data can easily be transferred across borders. As organizations store their data in various jurisdictions, they must consider the implications of the local laws concerning privacy, data protection, and access. For example, the General Data Protection Regulation (GDPR) in the European Union affects how companies handle personal data, regardless of where they are based, as long as the data pertains to EU citizens.

In essence, data sovereignty emphasizes the legal framework surrounding data storage, which can impact compliance, governance, and the handling of sensitive information. Knowing where data resides and the legal obligations tied to it is crucial for organizations to mitigate risks and ensure they adhere to the necessary regulations.