Home TECHNOLOGY Big Data & Analytics Is Your Business Data Safely Stored? The Importance of Local Data Centres

Is Your Business Data Safely Stored? The Importance of Local Data Centres

February 3, 2025

In the fast-paced digital world we live in, data serves as the essential foundation for businesses of all sizes, from small startups to large multinational firms. Protecting your business data, be it customer information, financial records, or operational data, is increasingly essential. However, there’s a crucial enquiry that every business owner and IT leader ought to consider: “Is my business data stored securely?”

The location of your data storage is a crucial element of data security. Choosing whether to store your business data locally or to depend on international data centres can significantly impact security, accessibility, and compliance. This article delves into the strategic advantages of local data centres for businesses, the potential risks associated with overseas storage, and the benefits of collaborating with a reliable provider like Previder for sustained data protection and operational effectiveness.

Why Data Localisation Matters

Data localisation involves the practice of keeping business data confined to a particular geographical region, usually within the same country where a company conducts its operations. The significance of data localisation is paramount, as it is essential for maintaining regulatory compliance, enhancing security, and improving accessibility. Here are several important factors for businesses to think about local data centres:

1. Compliance with Data Protection Laws

Each nation possesses distinct data privacy and security regulations, and it is essential for businesses to adhere to these legal frameworks to steer clear of penalties and legal complications. For example:

The General Data Protection Regulation (GDPR) in the European Union establishes rigors standards for data protection and privacy, detailing the conditions under which customer data must be stored and managed.
In the United States, regulations like HIPAA for healthcare data and CCPA for consumer data protection establish rigors compliance requirements.
Various areas implement comparable regulations that govern the storage and processing of sensitive data by businesses.

Opting for a local data centre allows businesses to adhere to national and regional regulations, effectively minimising legal risks linked to cross-border data transfers.

2. Improved Data Security & Privacy Protection

When businesses choose to store data in a foreign data centre, they must adhere to the legal regulations of that particular country. Certain governments possess regulations that enable them to examine, gather, or even confiscate data from foreign businesses without any advance warning. This raises significant concerns in nations with more lenient data privacy regulations.

Local data centres implement rigors security protocols, which encompass:

Physical security: Advanced biometric access systems, round-the-clock surveillance, and dedicated on-site security staff.
Cybersecurity measures: Firewalls, encryption, intrusion detection systems, and DDoS protection are essential components of a robust security strategy.
Backup & disaster recovery: Local providers frequently deliver automated backups and real-time disaster recovery strategies, guaranteeing seamless business operations in the event of cyberattacks or system failures.

Collaborating with a local provider allows businesses to minimise their vulnerability to risks linked to foreign government surveillance and cyber threats.

3. Lower Latency and Faster Access to Data

The time it takes for data to travel between a user and a data centre, known as latency, can greatly influence business operations. When data is stored in international locations, access times can be impacted by:

Increased network distance
Congested international data routes
Unpredictable connectivity issues

Storing data near your business location guarantees quicker access, smooth cloud application functionality, and enhanced real-time data processing.

4. Better Disaster Recovery and Business Continuity

An effectively organised disaster recovery plan is essential for businesses that cannot tolerate interruptions caused by cyberattacks, system failures, or natural disasters. Regional data hubs:

Offer redundant power supplies
Implement multi-location backups
Provide instant recovery options in case of data loss

Moreover, keeping data stored locally helps avoid potential conflicts related to data sovereignty that can occur during cross-border data recovery.

Risks of Overseas Data Centres

Although companies might explore the option of utilising overseas data centres for their cost-effectiveness or enhanced scalability, this choice carries significant risks. Here’s how depending on overseas storage can negatively impact your business:

1. Foreign Laws and Government Access to Data

The U.S. CLOUD Act (2018) empowers U.S. authorities to request data from any company subject to U.S. jurisdiction, irrespective of the physical location of the data.
China’s Cybersecurity Law (2017) mandates that all essential business data gathered in China must be stored domestically, thereby restricting foreign oversight of sensitive information.

The legal risks present significant challenges for companies managing confidential information, leading to local storage being a more secure choice.

2. Political and Economic Uncertainty

Due to cheaper operating costs, many companies store data in developing economies; nonetheless, these areas may experience economic crises, political unrest, or abrupt legislative changes, all of which can:

Disrupt business operations
Compromise long-term data security
Lead to unexpected service disruptions

3. Communication and Cultural Barriers

Dealing with time zone variations, cultural misalignments, and language problems while working with a foreign data centre may lead to:

Miscommunication during crisis situations
Delayed support response times
Complicated troubleshooting procedures

By providing direct connection, real-time assistance, and culturally appropriate solutions that are customised to your company’s requirements, a local supplier removes these concerns.

Why Choose a Local Partner Like Previder?

Businesses must prioritise dependability, security, and compliance above cost when choosing a data centre. Benefits of working with a reputable local partner like Previder extend beyond simple data storage and include:

1. Regulatory Compliance & Data Sovereignty

Businesses who use Previder ensure that they satisfy industry-specific and national data protection needs while also guaranteeing compliance with local rules.

2. State-of-the-Art Security Infrastructure

Previder’sdata centres offer:

Multi-layered security protections
Encrypted data storage solutions
Round-the-clock monitoring to prevent breaches

3. Customised Business Solutions

Local data centres provide custom processing and storage solutions, in contrast to global companies that offer one-size-fits-all packages. Companies may increase or decrease their storage requirements without incurring excessive costs for resources that are not utilised.

4. 24/7 Personalised Support

Businesses that work with a local partner get committed customer service in their mother tongue, with prompt help when required.

5. Improved Network Performance

Faster access speeds, less latency problems, and smooth cloud-based operations are all guaranteed by a local data centre, and these factors all improve corporate productivity.

Make a Conscious Choice for Secure Data Storage

Making the incorrect data localisation decision may have long-term effects for your company, impacting everything from security and performance to compliance. Selecting a local data centre is one of the most important choices a company can make given the increasing dangers from cyberspace, government requirements, and latency issues.

Businesses who use a reputable local supplier like Previder can: