AI engineering glossary · AI ethics law product
What is data residency?
Data residency (also called data localization, data localisation): The requirement or practice of keeping data stored, and sometimes processed, within a specific country or region. Laws and customer contracts may demand it, which affects choices of cloud region and AI vendor for products serving Indian or European users.
Data residency: an example
A fintech chooses a Mumbai cloud region so that customer records stay in India, and checks that its LLM provider offers in-country processing.
Related terms
- Cross-border data transfer
- Data sovereignty
- GDPR
- DPDP Act 2023
More AI ethics law product terms
- Data subject
- Datasheet for datasets
- Deflection rate
- Demographic parity
- Differential privacy
- Disparate impact
- DP-SGD
- DPDP Act 2023
Where you learn it
Data residency is part of the AI Engineering Program, which teaches it with notes, a hands-on lab and an exam. The first lesson is free.