The legal and regulatory concept that digital data is subject to the laws of the nation in which it is physically located.
Data Sovereignty refers to the principle that digital information is subject to the laws, regulations, and legal jurisdiction of the country or region where it is physically stored and processed.
For multinational enterprises, data sovereignty is a major compliance challenge. The EU's GDPR, for example, restricts how the personal data of people in the EU can be transferred to other jurisdictions, such as the US.
To enforce data sovereignty, organizations often deploy Private AI and on-premises infrastructure within specific geographic boundaries, so that sensitive data does not cross international borders to reach a public cloud provider.
See also Private AI, On-Premises, Data Mobilization, Data Lakehouse and Vector Database.