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Data residency & Zero Data Retention
Where your data is processed and stored — and whether the AI provider keeps it afterwards.
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What it is
Data residency means data is stored and processed in a chosen region, for example the European Economic Area (EEA). Zero Data Retention (ZDR) is a provider's commitment not to store the content of requests and responses after processing; its exact scope and exceptions depend on the contract.
Example
A company requires that client documents stay in the EEA and that providers don't keep prompts after processing them.
What can go wrong
Data crossing borders through a sub-processor, or kept by a provider longer than you expected.
How to secure it
Ask every provider in writing where data is processed, who the sub-processors are and how long anything is kept — and put it in the contract. Also check who controls the provider: data stored in the EEA can still be reached under non-EU law if the provider is controlled from outside the EU.
EU rules
Transfers of personal data outside the EEA must follow the GDPR transfer rules.
Plain-language summary, not legal advice.
In Obsigen
Obsigen: data on dedicated infrastructure, processing in the EEA, Zero Data Retention. About Obsigen AI
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