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Glossary

Data Residency

Data residency refers to the geographic location where a provider stores and processes data. It matters to companies because it helps them demonstrably meet data protection, contractual and industry requirements.

October 13, 2026Data ResidencyCloudGDPR

With cloud services, data is no longer stored in your own server room but in the provider's data centers, often spread across several locations. Data residency answers the question of which country or region these data centers are in. Many companies require storage within the EU, and some clients or industries also require storage within a specific country.

The GDPR does not generally require personal data to remain in the EU. However, transfers to third countries are only permitted under certain conditions, for example on the basis of an adequacy decision by the European Commission or standard contractual clauses.

How data residency is implemented

Typical examples

What companies should keep in mind

How it differs

Data residency only describes the location. Data sovereignty goes further and means control over who can access data and which law it is subject to.

This entry is a general overview and does not replace legal advice.

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