Glossary · Security and compliance
Data residency
Also called data sovereignty, data location, data hosting location
Definition
Data residency is the country or region where a provider stores your data. Some sellers, regulators and clients require deal documents to stay in a particular jurisdiction, such as the EU. Most data room providers let you choose a hosting region when you open a room.
Where data residency comes up
On this site, in our guides and in the conversations we've written up.
Guide How to choose a virtual data room Security and compliance: certifications (ISO 27001, SOC 2), encryption, data residency, and granular permissions. Guide Virtual data room security: what to look for It is a strong baseline, but pair it with SOC 2 Type II (which tests controls over time) and check encryption, permissions and data residency for the full picture. Guide Drooms VDR review: European data sovereignty, with a few caveats Drooms uses European data centres and puts considerable emphasis on GDPR compliance and European data sovereignty. Use case Best virtual data room for due diligence A diligence specialist: structured indexing, document analysis and an in-house AI model with EU data sovereignty. Use case Best virtual data room for real estate EU data residency and sovereignty where relevant
Lifecycle and portfolio management
Strong permissions for many parties
A long-standing specialist in real estate due diligence, strong across DACH, with structured indexing and an in-house… 
Video · VirtualData-Room.com Drooms review: European data sovereignty, with a few caveats It places particular emphasis on European data sovereignty, which is something very important to governments and companies across Europe at the moment because of the issues of maybe using US tools and what happens to the data there.
Video · VirtualData-Room.com Drooms review: European data sovereignty, with a few caveats It places particular emphasis on European data sovereignty, which is something very important to governments and companies across Europe at the moment because of the issues of maybe using US tools and what happens to the data there. Related terms
GDPR The EU's data protection law, which governs how personal data, including data in a data room, is handled. ISO 27001 The international standard for information security management, certified by independent auditors. SOC 2 An independent audit report on a service provider's security controls, common in the US. Single sign-on Logging in with a company account, such as Microsoft or Okta, instead of a separate password. Two-factor authentication A login that needs a second proof of identity, such as a code on a phone, on top of a password.