That sounds to me like the epitome of foolishness. Making a law about where your data rests requires a severe misconception of the risks of that data being revealed to your adversaries.
Depends on who your adversaries are. I have no doubt that all top cloud providers (AWS, Azure, GCP and OCI) are doing a great job keeping my data secure. But they need to obey US authority, and considering what is happening right now is not very reassuring. At the bare minimum, if I need to pick a cloud region, I will pick one within the EU. But after the cloud act (see: https://www.justice.gov/criminal/cloud-act-resources) not even Europe is secure. So, no is not foolishness.
Whether it's foolish or not, it's not my decision. There are three groups in an organization that'll have a significant impact to your solution approach:
- Legal
- Cybersecurity
- Enterprise Architecture
You can influence these groups, but ultimately, they set the mandates.
I'm having so much trouble making sense of this comment. Besides that we're not talking about a law, it's common practice for European companies to require their SaaS products and themselves to only have EU data residency, so it's not that foolish, especially if that data is very sensitive. What are you talking about with severe misconceptions and adversaries?