Amid an increased emphasis on data security and data privacy in many jurisdictions, and with an increasingly digitized and inter-connected global economy, the ability for data to flow and be utilized across borders in increasingly important.
With various motives (for instance, on the grounds of law enforcement, national security, personal data protection or economic protectionism), data localization measures can also bring adverse side effects for IT infrastructure, risk management, cyber security and anti-money laundering practices, as well as reducing access to financial services and markets in some countries.