What does the concept of "data sovereignty" primarily address?

The concept of "data sovereignty" primarily addresses the legal governance of data in its location. This principle suggests that data is subject to the laws and regulations of the country in which it is collected and stored. For instance, personal data stored in a specific country is protected by that country’s privacy laws, which can significantly influence data management practices for organizations operating legally within that jurisdiction.

Understanding data sovereignty is crucial for businesses, especially those operating across borders, as it helps them ensure compliance with regional laws concerning data protection and privacy, such as the General Data Protection Regulation (GDPR) in the European Union. This aspect is vital not only for maintaining legal compliance but also for building trust with customers and stakeholders who are increasingly concerned about how their data is handled and protected.

The other options do not encapsulate the essence of data sovereignty: storage capacity pertains to the physical capabilities of data centers, methods of data encryption focus on securing data rather than legal frameworks, and physical locations of cloud services relate to infrastructure but do not directly address the legal implications of data governing laws.