Data sovereignty refers to the principle that data is subject to the laws and governance structures of the country where it is collected, processed, and stored. It emphasizes the need for data to be managed in compliance with local regulations, ensuring that privacy, security, and access controls align with national standards. Data sovereignty is particularly important for organizations operating in regions with strict data protection laws, as it impacts how data is transferred, accessed, and used, safeguarding the rights of individuals and maintaining the integrity of national regulatory frameworks.