IT Glossary

EU Data Residency

EU data residency means storing and processing data inside the EU. Learn what it is, how it supports GDPR, and why European buyers require it.

July 3, 2026

What is EU Data Residency?

EU data residency is the requirement or practice of storing and processing data physically within the geographic borders of the European Union. It helps organizations comply with regulations such as GDPR, reduces exposure to non-EU government access, and is increasingly demanded by European customers and public bodies when choosing software vendors.

How EU data residency works

  • The vendor hosts data in data centers located within the EU.
  • Processing and backups also remain within EU borders.
  • Contracts and sub-processors are documented for transparency.
  • It supports GDPR obligations around international data transfers.
  • It reduces exposure to extraterritorial access laws outside the EU.

EU data residency vs data sovereignty

Data residency and data sovereignty are related but distinct. Data residency is about where the data is physically stored. Data sovereignty is about which jurisdiction's laws govern that data.

Examples and use cases

A European mid-market company evaluating a SaaS vendor asks a now-standard question: where is our data stored, and under whose laws? A vendor hosting in the EU clears procurement and security review quickly, while a US-only host raises GDPR and access concerns. This is exactly where European-built tools have an edge over US competitors. Corma hosts data in the EU and is GDPR-native, with ISO/IEC 27001:2022 certification, which is a deciding factor for many European buyers.

Related concepts

FAQ

What is the difference between data residency and data sovereignty?

Data residency is about where data is physically stored. Data sovereignty is about which country's laws govern that data. They are related but distinct.

Why do European companies require EU data residency?

To support GDPR compliance, reduce exposure to non-EU access laws, and meet procurement and security requirements that increasingly demand EU hosting.

Does Corma offer EU data residency?

Yes. Corma hosts data within the EU and is GDPR-native and ISO/IEC 27001:2022 certified, which matters for European buyers.

Request a demo