The term 'data sovereignty' refers to the concept that data is subject to the laws and governance of the nation in which it is stored. In relation to cloud computing, this means that organizations must consider how local regulations, especially those related to privacy and security, affect their data when using cloud services. Data sovereignty can influence where companies choose to host their data as they aim to comply with regulations like the General Data Protection Regulation (GDPR) in the European Union or others particular to different jurisdictions.