Data residency refers to the physical location where personal data is stored, with regulations such as GDPR, CCPA, and PIPL requiring organizations to comply with specific laws when handling data from various countries. Understanding data residency is crucial for businesses to ensure compliance with local laws, protect customer data privacy, and maintain trust in their operations. The concept of data localization goes a step further, mandating that data must be stored and processed within a specific location, often driven by national security concerns or a desire for greater control over citizen data. As data residency regulations vary across countries and regions, organizations need to assess their data landscape, identify relevant requirements, and implement strategies to ensure compliance, while also balancing security measures with regulatory obligations.