There is a significant amount of personal data available online. Every online interaction with a website generates data. When website users make a purchase, send a request or a message, register, or fill in an online form, they provide personal data for the website. But who controls this data, and where is this data stored?
In 2025, the landscape of data localization has evolved significantly, with new regulations, stricter enforcement, and growing concerns around digital sovereignty setting new standards on how organizations collect, store, and transfer personal data. For websites performing global operations, understanding and implementing data localization measures is no longer optional— it’s a compliance necessity.
Read this blog about data localization in 2025: what it means for your website and global operations.
What Is Data Localization?
Data localization refers to the set of regulatory requirements that require companies to store and process data collected about a nation's residents within the country or region.
Keeping data within national borders is an attempt to safeguard sensitive information about a country's citizens, regulate data flows, and ensure control over the access and processing of data.
Why Data Localization Matters in 2025?
Governments typically set regulations for data localization for the following reasons:
- Protecting data of their citizens
Data localization enables governments to better safeguard their citizens' information from unauthorized access. - Safeguarding national security and digital sovereignty
Cyber threats are rising. By localizing data, governments can better monitor and mitigate potential security breaches. - Ensuring compliance with local privacy regulations
The global landscape of data protection laws is evolving rapidly. Besides the European Union's GDPR, countries like India and China have introduced their own data localization rules and stringent standards for data handling to ensure data sovereignty. - Enabling easier law enforcement access
When data is stored locally, governments could control data collection and processing practices of companies and enable easier law enforcement access. - Building consumer trust
Consumers are increasingly aware of their data collection and sharing practices. Cisco’s 2025 data privacy benchmark study revealed that 86% of respondents support privacy legislation, recognizing its positive impact on business operations. Data localization can enhance customer trust by ensuring users that their data is handled responsibly within their own country and in accordance with stringent privacy laws.
This means that if your website collects personal data from users in countries that have data localization rules, you need to store that data locally or ensure adequate cross-border transfer protections.
Adherence to data localization laws is needed to ensure data security, comply with privacy regulations, and foster customer confidence and trust.
Global Trends of Data Localization in 2025
Several trends in data localization have evolved this year:
1. Expansion of Regional Data Laws
Countries continue to introduce and strengthen laws that mandate local data storage.
- European Union
Although the GDPR doesn't explicitly mandate data localization, it indirectly encourages local data storage by imposing strict requirements on data transfers outside the European Economic Area (EEA). - India
The proposed personal data Protection Bill emphasizes storing sensitive personal data within the country, aiming to keep Indian citizens' information safe. - China
The Cybersecurity Law of the People's Republic of China and the China's Personal Information protection law (PIPL) was enacted to enhance data protection and cybersecurity of Chinese residents. Under its Cybersecurity Law, China mandates that critical data collected about Chinese residents must be stored within China. - United States
The U.S. does not have general federal legislation on data localization. However, some states regulate it. California passed CCPA, CPRA, and other stringent sectoral legislation, such as health care information, that impose restrictions similar to data localization.
2. Tighter cross-border data transfer mechanisms
Frameworks like the EU-U.S. Data Privacy Framework and Standard Contractual Clauses (SCCs) impose stringent requirements for cross-border data transfers. Regulators increasingly require Transfer Impact Assessments (TIAs) and meet stricter conditions for data transfer between regions.
3. Fines for data localization or improper data transfer
In 2025, fines for improper data localization are increasing. Non-compliant businesses are being penalized not just for breaches but for improper data transfers or lack of proper localization strategies.
Under the GDPR, fines for improper data localization could reach up to €20 million or 4% of annual global turnover, whichever is greater.
In 2025, TikTok was fined €530 million by Ireland’s DPC for unlawfully transferring EU user data to China and lacking transparency.
In 2023, Meta was fined €1.2 billion for data localization, among other breaches. This remains the largest fine on record so far.
Under the Digital Personal Data Protection Act of India, penalties for violations, including unlawful international transfer of personal data, can go as high as INR 2.5 billion (~€27.5 million), depending on the severity and category of breach.
Under Federal Law No. 242-FZ of Russia, companies could face up to ₽18 million (~ €200 k) for repeat violations of data localization requirements.
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What Data Localization Means for Your Website and Global Operations?
Data localization requirements add an extra burden to hosting companies’ infrastructure. Companies must establish localized data centers and set rules for the cross-border transfer of their users’ data.
Most websites collect data through forms, cookies, analytics, or marketing platforms. If your website collects user data or you perform global operations, you need to consider the following aspects related to data localization:
- local storage of personal data
Ensure that personal data of users (like real names, email addresses, IPs, or behavior tracking) in certain jurisdictions is stored within those jurisdictions. - Minimize cross-border transfers
Avoid unnecessary data transfers and ensure that any transfer complies with mechanisms such the EU-U.S. Data Privacy Framework or a relevant adequacy decision. - Work with compliant vendors
Select third-party tools (like email providers, analytics, advertisement platforms, etc.) that are compliant with localization laws and offer regional data hosting. - Work with CMPs that offer geo-targeting
Your Consent Management Platform (CMP) should detect a user’s location and adjust both consent requirements and data storage requirements accordingly.
In general, data localization has two impacts on businesses:
- Need for infrastructure investment
Companies need to invest in local data centers or partners with regional cloud service providers to comply with localization laws. - Increased operational costs
Adhering to diverse data regulations across countries requires additional operational costs.
How Can a CMP Help You to Navigate Data Localization Rules?
Select a Consent Management Platform (CMP) that implements data localization measures and ensures compliance with local data privacy laws, based on users’ location.
A modern and professional CMP like CookieScript could help you to align your operations with data localization rules. CookieScript CMP offers the following functionalities:
- Geolocation detection
Geo-targeting feature ensures users are shown the correct consent banner and disclosures based on their jurisdiction. - Local servers for data storage
CookieScript CMP has servers for personal data storage in Europe, so data collected from European residents is stored locally and does not leave Europe. - Automatic third-party cookie blocking
CookieScript CMP automatically blocks third-party scripts until valid consent is obtained. This is crucial for complying with localization and transfer rules. - The EU-U.S. Data Privacy Framework support If you still want to transfer the personal data of European users to the U.S., CookieScript CMP allows you to deliver a cookie notice and collect valid Cookie Consent. When using CookieScript CMP, the data transfer between Europe and the U.S. will adhere to the EU-U.S. Data Privacy Framework.
- Detailed consent logs CookieScript CMP allows you to record and later download detailed consent logs for proof of compliance and support your legal documentation needs.
- Integration with Google Consent Mode v2.
- Integration with IAB TCF v2.2.
- Privacy Policy Generator The Privacy Policy Generator creates and regularly updates your website’s Privacy Policy that includes data localization practices.
- privacy laws compliance hints CookieScript CMP offers one of the most configurable cookie banners on the market. You can configure your Cookie Banner behavior or design. However, when you set the settings of your banner, CookieScript CMP provides privacy laws compliance hints that will help you to comply with GDPR, CCPA, CNIL, and other privacy laws.
Conclusion
In 2025, data localization is not just a regulatory requirement but a strategic imperative. As data becomes increasingly integral to national security, economic growth, and consumer trust, ensuring its local storage and processing is of principal importance. Implementing data localization measures is no longer optional— it’s a compliance necessity. Businesses that recognize and implement data localization best practices first will comply with regional data privacy laws, get user trust, and achieve a competitive advantage.
A professional CMP, such as CookieScript, can help you align your operations with data localization rules and prepare for new data privacy requirements.
Frequently Asked Questions
What is data localization?
Data localization refers to the set of regulatory requirements requiring companies to store and process data collected about a nation’s residents within the country or region. EU, India, China, and other countries continue to introduce and strengthen laws that mandate local data storage. CookieScript CMP stores user consent and other data locally within the EU.
Does GDPR require data localization?
While the GDPR doesn't explicitly mandate data localization, it encourages local data storage indirectly by imposing strict requirements on data transfers outside the European Economic Area (EEA). There are huge fines for improper cross-border data transfer from the EU. Use CookieScript CMP to comply with the GDPR.
What are the benefits of data storage within the country?
Data storage within the country (i.e. data localization) offers direct control over data within a country, allowing companies to comply with regional data privacy laws, gain user trust, and achieve a competitive advantage. CookieScript CMP stores user consent and other data locally within the EU.
What is an adequacy decision under GDPR?
An adequacy decision under the GDPR is an EU certification that confirms a non-EU country has data protection standards equivalent to those of the GDPR. When a country has an adequacy decision, personal data can be transferred without any restrictions from the EU and EEA to that country. Switzerland, Canada, New Zealand, South Korea, Argentina, and other countries have an adequacy decision.