Data residency dictates the geographic location where user data is stored and processed. For AI systems, it intersects with privacy laws, latency, and model quality when training on regional data.
Regulatory Landscape (selected)
Residency Implementation Options
Design Trade-offs
- Regional training fine-tunes models on local dialect but fragments checkpoints.
- Keeping GPU clusters in-residence may reduce choice and cost efficiency.
- Privacy-enhancing techniques (encrypt-in-use) mitigate residency but add latency.
Current Trends (2025)
- Confidential GPU enclaves (TEE + H100 SGX) allow training on encrypted data outside jurisdiction while satisfying auditors.
- Cloud providers launch "sovereign cloud" partitions operated by local entities.
- Automated residency verification tools scan S3 prefixes and VPC flow logs for leaks.
Implementation Tips
- Tag every dataset and log stream with residency metadata.
- Use geo-restriction policies in CDN to enforce regional output delivery.
- Keep incident response playbooks per jurisdiction (contact DPA within 72 h in EU).