“Data residency” refers to the geographical location where data is stored and processed, which has significant implications for legal compliance. Organizations must ensure their data management practices adhere to local regulations and laws, particularly concerning privacy and security. For example, certain jurisdictions may mandate that personally identifiable information (PII) remains within specific borders. Understanding data residency requirements is crucial for businesses to mitigate legal risks, comply with international standards, and maintain trust with customers regarding their data protection commitments.