Data Localization for Compliance, Security, and Performance

Hosting data within regional boundaries ensures compliance with strict regulations like the GDPR in Europe or Asia’s evolving data protection laws. Local storage minimizes exposure to foreign legal demands, reduces latency for regional operations, and aligns with consumer expectations for data sovereignty. Performance-sensitive industries, such as fintech or healthcare, benefit from proximity-based architectures that avoid transatlantic latency. Additionally, localized data supports resilience against supply chain disruptions, as seen in shifting e-commerce airfreight patterns from Asia to Europe.

5-Step Plan to Audit Data Locations

You first need to know where your data is located. If you have set up your own CRM or ERP system, this can be easy, but if your company uses a lot of cloud services, then this may be a puzzle. Follow the below five steps to have a good start.

1. Inventory Data Assets
   Use tools like Microsoft Purview or AWS Macie to catalog all structured (SQL databases) and unstructured (emails, PDFs) data. Prioritize identifying regulated data (PII, financial records) stored in U.S.-based cloud services like Snowflake or Salesforce
2. Map Data Flows
   Visualize data movement across regions using Splunk or Talend. Track how information travels between U.S. headquarters and regional offices, paying attention to third-party SaaS tools (e.g., Slack, Zoom) that may route data globally
3. Assess Legal Dependencies
   Audit contracts for cloud providers (AWS, Azure) to verify data residency commitments. Check if services use “Global” AWS regions vs. pinned locations like Europe (Frankfurt) or Asia (Singapore)
4. Identify Shadow IT
   Scan networks for unauthorized apps (Dropbox personal accounts, local Excel files) using Cisco Umbrella or Netskope. These often bypass corporate policies, creating unmonitored data reservoirs
5. Validate Compliance
   Conduct a GDPR-style Data Protection Impact Assessment (DPIA) with tools like OneTrust or TrustArc. Focus on cross-border transfer mechanisms (SCCs, Binding Corporate Rules) for U.S.-to-EU/Asia data pipelines.

Best Practices for Data Relocation

If you have found that essential data is located on USA territory and you want to relocate it, then keep in mind the following best practices:

• Prioritize Incremental Migration
  Use “trickle” migration to transfer data in phases, minimizing downtime. Test each batch for integrity with tools like Informatica or Fivetran
• Enforce Zero-Trust Security
  Implement self-encrypting drives (SEDs) for on-premises storage and AES-256 encryption for cloud transfers. Restrict access via Okta or Azure Active Directory
• Optimize for Hybrid Architectures
  Combine European hyperscalers (OVHcloud) with Asian providers (Alibaba Cloud) to balance compliance and performance. Use Terraform to automate multi-cloud orchestration
• Conduct Parallel Testing
  Maintain legacy U.S. systems during migration, running A/B tests to validate application functionality in the new environment
• Update Incident Response Plans
  Redesign breach notification workflows to meet EU’s 72-hour GDPR mandate or Asia’s PDPA requirements. Train teams using KnowBe4 for region-specific compliance

Please note that transferring your data to a new location can also be a good trigger to update standards, assess the integrity of your databases and clean up data, for example when GDPR obliges you to do so.

Frequently asked questions about data relocation