Capterra Glossary
Data sovereignty is the idea that computer data is subject to the laws and regulations of the country in which it resides. Over 100 countries around the world have various versions of data sovereignty laws in place today. However, with the rise of cloud computing it is becoming more difficult to verify that certain datasets only exist in permitted locations. Most cloud customers simply have to trust that their cloud providers are being truthful about where their servers are hosted.
Small and midsize businesses that develop and sell cloud services to their customers should be aware of the data sovereignty laws in their country to avoid legal or financial penalties. Most of the time, cloud service providers are required to keep customerʻs data within the country the customer resides in.