What does "data sovereignty" mean in cloud computing?

Data sovereignty refers to the principle that data is subject to the laws and regulations of the country in which it is collected or stored. This means that if a business collects data in a specific country, it must comply with that country's legal frameworks regarding privacy, security, and data handling. This concept is particularly important in cloud computing, where data can be stored in various locations around the globe but must still adhere to local laws.

Understanding data sovereignty is crucial for organizations operating in multiple jurisdictions, as it can impact their compliance strategies, data storage decisions, and risk management processes. Organizations must ensure that they are not only aware of but also responsive to the legal requirements in each country concerning data that they handle, thus protecting themselves from potential legal ramifications and fines.