The concept of data sovereignty refers to the idea that data is subject to the laws and regulations of the country in which it is collected. This impacts cloud services significantly, as providers must comply with local laws, affecting data storage, processing, and management practices. For businesses utilizing global cloud solutions, this can complicate compliance, data access, and cross-border data transfers. Consequently, companies must consider local laws, privacy policies, and regulations when selecting cloud services to ensure legal compliance and secure data handling.