The principle of data sovereignty implies that:

The principle of data sovereignty refers to the idea that data is subject to the laws and regulations of the country in which it is stored or collected. This means that local legislation governs how data can be managed, accessed, and protected. Organizations operating in different jurisdictions must understand and comply with these local laws, which may include regulations around data privacy, security, and transfer.

This principle has significant implications for businesses, especially those that engage in international operations or cloud computing. For instance, if a company's data is hosted in a specific country, it must adhere to that nation's data protection laws, which can influence how data is handled, who has access to it, and the rights of individuals whose data is being stored.

Understanding data sovereignty is crucial for compliance with legal frameworks, protecting customer data, and mitigating risks associated with cross-border data flow. Since data can be affected by legislation that varies from one jurisdiction to another, this principle ensures that organizations take appropriate measures to protect data and comply with all necessary regulations based on its geographic location.