Data residency requirements exist in several legal standards, requiring corporations to localize their data. Most data privacy regimes, on the other hand, do not necessitate data localization.
Even if governments do not have laws requiring data localization, highly regulated industries such as banking and healthcare may adopt best practice recommendations stating that data must meet additional standards if it is to be handled outside of its place of origin. Organizations may decide to localize data rather than satisfy the extra standards in certain circumstances.
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