The principle that data answers to the law of the place where it is stored, which limits where regulated organizations may keep and process it.
Data Sovereignty means stored data falls under the courts and regulators of the country that hosts it.
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.