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The concept that data is subject to the laws of the country it is collected in.
Data sovereignty is important to understand as different countries have varying regulations regarding data privacy, security, and accessibility. Ensuring data sovereignty means that organizations must comply with local laws, which can impact how data is stored, processed, and transferred. This is especially important for SaaS businesses, where the data they collect and process may cross international borders, and non-compliance with data sovereignty rules can lead to legal and reputational risks.