“Data sovereignty” defines the concept that data is subject to the laws and regulations of the country where it is collected and stored. This principle emphasizes the control of data by local laws, making businesses accountable for how they handle information. Compliance with data sovereignty regulations is crucial for organizations operating internationally, as they must navigate varying legal landscapes regarding data privacy and security. Upholding these principles helps mitigate risks associated with data breaches and enhances customer trust in data handling practices.