What is meant by Data localization?
The term "data localization" refers to the process of adapting and processing data for a specific region, country, or local target group. This typically involves compliance with legal regulations regarding data protection and storage in certain countries or regions. Companies often need to ensure that sensitive data is stored and processed within the country where it was collected to comply with local laws.
Typical software functions in the area of "data localization":
- Data Storage Policies: Implementing rules to ensure data is stored only in specific geographic regions.
- Compliance Monitoring: Checking if data localization requirements are being met to avoid legal consequences.
- Regional Access Control: Restricting data access to specific users or systems based on their geographic location.
- Data Encryption: Ensuring that locally stored data is encrypted to meet privacy requirements.
- Data Replication: Automatically creating data backups at local sites to ensure data availability and integrity.
- Localization Reporting: Generating reports that show the status of data localization and regulatory compliance.
- Automated Data Migration: Automating the process of migrating data to the appropriate country or region.
- Geographic Routing of Data Traffic: Directing data traffic through servers located within permissible regions.
Examples of "data localization":
- Data Storage in the EU: Data collected within the EU must also be stored within the EU to comply with GDPR requirements.
- Cloud Compliance: Using cloud services that ensure all data is stored within a specific country, such as Canada or China.
- Data Processing in Specific Jurisdictions: A financial company processes data only in countries with strict privacy regulations, such as Germany or Switzerland.
- Software Adaptation to Local Laws: An HR software ensures that payroll data is stored according to the legal requirements of the respective country.
- Geolocal Restrictions: A software solution that prevents data from being accessed from certain countries or regions to comply with local data protection regulations.