Definition - What does Data Localization mean?
Data localization is the act of storing data on any device that is physically present within the borders of a specific country where the data was generated. Free flow of digital data, especially data which could impact government operations or operations in a region, is restricted by some governments. Many attempt to protect and promote security across borders, and therefore encourage data localization.
While some arguments support data localization, some feel that misguided policies on data localization could cause serious harmful consequences to citizens and economies alike.
Techopedia explains Data Localization
The requirements for data localization can be for different reasons, such as mandate by national laws that require certain data to be physically stored on servers within the country or the need to comply with data protection regulations. This is especially true when it comes to cross-border transfers in which case data storage within a country seems to be a cost effective and better solution, or in cases where enterprise customers of data storage technologies and public opinion favors in-country data-storage solutions and strategies. Data localization often requires better IT infrastructure and stringent security measures for data related to business operations.
Some favor data localization due to fear of losing private data to hackers in the case of foreign data storage solutions. Some oppose data localization, as it is seen as hindering the flexibility of the internet.