India may become next restricted market for U.S. cloud providers

guest · Aug 4, 2018

India may become next restricted market for U.S. cloud providers
August 04, 2018
https://techcrunch.com/2018/08/04/india-may-become-next-restricted-market-for-u-s-cloud-providers/

Data sovereignty is on the rise across the world. Laws and regulations increasingly require that citizen data be stored in local data centers, and often restricts movement of that data outside of a country’s borders.

Now, it appears that India will join this policy movement. According to Aditya Kalra in Reuters, an influential cloud policy panel has recommended that India mandate data localization in the country, for investigative and national security reasons, in a draft report set to be released later this year.

If the draft report and its various recommendations become law in India, it would have significant effects on public cloud providers like Microsoft, Google, Amazon, and Alibaba, all of whom have cloud operations in the country. In order to comply with the regulations, they would almost certainly have to expend significant resources to build additional data centers locally, and also enforce data governance mechanisms to ensure that data didn’t flow from a domestic to a foreign data center accidentally or programmatically.
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