Overview
Data Residency refers to the physical or geographic location of where an organization's data is stored. Unlike data sovereignty, which is about the legal jurisdiction, residency is simply about the physical location.
Why it Matters
- Performance: Storing data closer to users can reduce latency.
- Taxation: Some countries have tax implications based on where data is processed.
- Compliance: Many regulations (like GDPR) have specific requirements about where certain types of data can be stored or transferred.
Cloud Providers
Major cloud providers (AWS, Azure, Google) allow customers to choose specific 'regions' to meet their data residency requirements.