Cloud computing has many benefits, including increased efficiency, flexibility and disaster recovery capabilities. For many companies, however, regulatory requirements on data transfers and data localization have prevented them from adopting cloud computing in their business models.

Cloud computing service providers have noticed these obstacles, and many of them, including Amazon Web Services, a cloud computing platform operated by, have been opening data centers abroad to satisfy customer demands and regulatory requirements. Recently, California-based online file sharing and content management services company Box Inc. announced that, in partnership with Amazon Web Services and IBM, it will offer services to store data in Germany, Ireland, Singapore and Japan. 

The “Box Zones” service will allow businesses to use Box’s services while meeting data localization concerns.

Cloud providers aren’t the only businesses that are finding new ways to take advance of data localization requirements. Following Russia’s data localization law, which took effect September 2015, Russia’s nuclear power agency, Rosatom State Atomic Energy Corp., announced it is building a new data center. Supporters of the project alleged that building a data center next to a nuclear plant is a good idea because server farms need large amounts of guaranteed secure electricity and water for cooling.

To keep up with the constantly evolving world of privacy and security sign up for the Bloomberg BNA Privacy and Security Update.