Data residency refers to where a business, industry body or government specifies that their data is stored in a geographical location of their choice, usually for regulatory or policy reasons.A typical example of a data residency requirement in action is where a company wishes to take advantage of a better tax regime. Doing so will usually require the business to prove they are not conducting too great a proportion of core business activities outside that country’s borders – including the processing of data. They will therefore impose a data residency that requires them to use certain infrastructures, and then impose strict data management workflows on themselves and any cloud service providers in order to protect their taxation rights.