The concept of data sovereignty affects cloud services by requiring that data is stored and processed in compliance with the legal frameworks of the country where it originates. This can influence where companies choose to locate their data centers and how they manage data storage and access. Providers must navigate various regulations concerning data privacy and ownership, which can complicate international data transfers. Companies often face the challenge of balancing operational efficiency with legal compliance, as strict data sovereignty laws can lead to increased costs and potential barriers to global service offerings.