What is data residency? What it covers in AI, and who offers it
The Morse teamPublished 8 min read
Data residency is a provider's promise that your data is stored in a specific country or region, such as the EU or the United States, usually one the customer picks. In AI services, the promise covers saved data like chat history and uploaded files. It often leaves out where the model processes your prompt. As of November 12, 2026, OpenAI, Anthropic, Google, and Microsoft sell residency controls to organizations. None of their residency settings reaches a personal account. Mistral is the exception, because it hosts everyone's data in the EU by default.
We read the data residency pages of OpenAI, Anthropic, Google, Microsoft, and Mistral on November 12, 2026, along with the section of the US Code that the CLOUD Act added and the text of the GDPR. Every row in the table below links to the page it came from. The word "residency" means something different at each of these companies, so check what a given offer covers before you rely on it.
Which AI providers offer data residency?
Read on November 12, 2026. "At rest" is where saved data is stored. "Inference" is where the model runs on your prompt.
| Provider and product | Who can get it | Where data is stored at rest | Where the model runs | Source |
|---|---|---|---|---|
| ChatGPT Enterprise and Edu | New workspaces of eligible customers | One of 10 regions: Australia, Canada, Europe, India, Japan, Singapore, South Korea, the UAE, the UK, or the US | In-region only with inference residency, offered in Europe, the US, and the UAE | OpenAI |
| ChatGPT Business | Picked at checkout, "rolling out gradually" | The chosen region, plus a US copy of every prompt and response "for a limited time" if you pick another region | Not covered | OpenAI |
| OpenAI API | Eligible customers, set per new project | The selected region, where an endpoint needs to store data | In-region only where that region supports regional processing | OpenAI |
| Claude Enterprise | Usage-based Enterprise plans only | The United States | US-only inference if an admin turns it on | Anthropic, Anthropic privacy |
| Claude API | API workspaces | "us" is the only workspace geo | inference_geo set to "global" (the default) or "us" | Anthropic |
| Google Workspace with Gemini | Supported Workspace editions | The United States or Europe | In-region processing only on Enterprise Plus, Frontline Plus, and Enterprise Essentials Plus | |
| Gemini Enterprise Agent Platform (Google Cloud) | Google Cloud customers | The location you choose | Set by the endpoint you call; global endpoints carry no residency guarantee | Google Cloud |
| Microsoft Copilot (Microsoft 365) | Commercial customers; the EU Data Boundary covers EU customers | EU and EFTA countries, for customers in the boundary | EU traffic stays in the boundary; Claude models in Copilot are excluded | Microsoft |
| Mistral Le Chat (Vibe) and API | Everyone, by default | The EU, or the US if you choose its US API endpoint | An inference provider in the EEA, and Mistral Compute in France; image generation and web search go to US subprocessors | Mistral, Mistral Trust Center |
Only Mistral's row reaches a free or personal account.
What does data residency cover in AI?
Mostly data at rest. Data in an AI service is in one of three states: at rest (saved chats, files, and their backups), in transit (moving between your device and the provider), and in processing (the model working on your prompt). Residency offers are written around the first state, and each provider says separately how far they reach into the other two.
- At rest. OpenAI defines ChatGPT data residency as keeping "in-scope customer content stored at rest in a specific geographic region" (OpenAI). That content includes conversations, files, Memory, custom GPTs, and image generation inputs and outputs, with their backups and replicas kept in the same region. Account data, billing details, and logs without content are out of scope.
- In transit. OpenAI's API terms say residency doesn't apply to "any transmission or storage of Customer Content outside of the selected region caused by the location of an End User" (OpenAI). For its US and EU API addresses, OpenAI uses Cloudflare Regional Services so that "TLS termination and HTTPS decryption occur within the selected processing region."
- In processing. This is where the model runs, and most offers treat it as a separate setting.
Some data leaves the region by design. OpenAI lists web search, apps and MCP connections, workspace metadata, the workspace name, billing information, and user logins as data that may be stored outside the chosen region (OpenAI). Its API documentation adds that residency "does not apply to system data," such as analytics, usage statistics, and support requests (OpenAI). Google's data regions don't cover "logs or cached content" or Gemini Notebook, formerly NotebookLM (Google). When a US user and an EU user message each other directly, Google stores the messages in both regions (Google). Microsoft's EU Data Boundary page says customer data will still leave the boundary in "limited circumstances," which Microsoft documents on separate pages (Microsoft Learn).
Does data residency cover where the AI model runs?
Usually not. OpenAI, Anthropic, Google, and Microsoft each treat storage and processing as separate settings. Most of their residency offers stop at storage. Mistral's subprocessor list gives a location for both. It places its inference provider in the EEA and its own Mistral Compute infrastructure in France, while image generation and web search go to companies in the United States (Mistral Trust Center).
- OpenAI sells in-region GPU work only to Enterprise and Edu, and only in Europe, the US, and the UAE; even then "non-GPU processing may still occur globally" (OpenAI).
- Anthropic works the other way around. Its Enterprise setting "doesn't control data storage," only where inference runs (Anthropic).
- Google Cloud keeps stored data in the location you picked whatever endpoint you call, but a request sent to a global endpoint "may be processed in any Google Cloud location around the world" (Google Cloud).
- Microsoft sends Copilot's model calls to the nearest data centers in the region, but they "can call into other regions where capacity is available during high utilization periods" (Microsoft Learn). Customers outside the EU "may have their queries processed in the US, EU, or other regions."
- Claude inside Copilot is "currently excluded from the EU Data Boundary," and Microsoft turns Claude models off by default for customers in the EU, EFTA, and the UK (Microsoft Learn).
If you're buying for an organization, get both answers in writing: where content is stored at rest, and where inference runs.
Does ChatGPT Plus have data residency?
No. OpenAI offers stored-content residency to eligible API customers and new ChatGPT Enterprise and Edu customers. Its help center names no consumer plan (OpenAI). A February 7, 2025 ITdaily article said "ChatGPT Plus and Edu users can choose to store their data within the borders of Europe" (ITdaily), but OpenAI's own European announcement named only ChatGPT Enterprise, ChatGPT Edu, and the API Platform (OpenAI). For what a personal account gets at each company, see where ChatGPT and 11 other AI apps store your chats.
Mistral is the one provider here that hosts every account in the EU by default, according to its help center dated August 12, 2026 (Mistral), and is Le Chat private covers what it keeps there.
What is the difference between data residency and data sovereignty?
Data residency is where data sits. Data sovereignty is whose laws can reach it. Data localization, a third term, is a law that requires certain data to stay inside a country.
| Term | The question it answers | Who decides |
|---|---|---|
| Data residency | Where is the data stored? | The customer, from the regions a provider offers |
| Data sovereignty | Whose laws can reach the data? | Every country with a legal claim on the data or on the company holding it |
| Data localization | Must the data stay in the country? | A legislature or regulator |
The three come apart whenever a company based in one country stores data in another. A residency setting can meet a localization rule and still leave the sovereignty question open, because the company holding the data may answer to another country's courts.
OpenAI pitched European residency as a way to help organizations "meet local data sovereignty requirements" (OpenAI). US law doesn't stop at the server's border, though. The CLOUD Act added a section to the US Code that requires a provider to preserve or disclose data in its "possession, custody, or control, regardless of whether such communication, record, or other information is located within or outside of the United States" (18 U.S.C. 2713). The Department of Justice says the US enacted the CLOUD Act in March 2018, and that it lets foreign partners with bilateral agreements obtain electronic evidence from US-based providers "wherever it happens to be located" (DOJ). Its page lists agreements with the United Kingdom, signed October 3, 2019, and Australia, dated December 15, 2021.
The EU's text pulls the other way. Article 48 of the GDPR says a court judgment or authority decision "of a third country" requiring a controller or processor to transfer or disclose personal data "may only be recognised or enforceable in any manner if based on an international agreement, such as a mutual legal assistance treaty" (EUR-Lex). How those two rules meet for a given company is a question for a lawyer. This isn't legal advice. Our guide to whether AI chats can be subpoenaed covers how courts have reached chat logs so far.
How Morse keeps your chat history on your device
Every residency offer above is a promise about which of a provider's servers holds your history. For your history, Morse's answer is simpler: it isn't on our servers at all. Chats, Studio images, characters you make, and settings are kept in your browser, encrypted. Our servers don't keep messages or log what you write, and the browser copy takes two keys to open: one that never leaves your device, and one our server hands you at sign-in.
What leaves the device is the message itself, on its way to a model. If a law or contract requires a region for processing, check with us at hello@trymorse.ai before relying on any mode. Otherwise, pick the mode by who you'd rather not see or keep the message:
- Private, when the worry is a stored copy on someone else's disk. New chats start here. Morse has zero data retention agreements with its inference, search, and other providers, so open-weight models like DeepSeek, Kimi, and GLM, plus xAI's Grok, answer without anyone keeping the prompt. Where a provider confirms zero retention on each reply, Morse checks it and refuses a reply that doesn't.
- E2EE, when the worry is who can read the prompt while it's processed. Your browser verifies the enclave's hardware attestation and encrypts the message for that enclave alone, so Morse's servers relay ciphertext they can't read. The enclaves are run by third-party providers, not by Morse, and the protection rests on the enclave hardware and attestation working as designed. It comes with Pro, at $19 a month.
- Anonymous, when the job needs GPT, Claude, or Gemini. Our proxy strips your account, email, and IP address and sends the request under Morse's own account. The provider sees the message without knowing it's you, and may keep it for a limited time to check for abuse, under its own policy.
Morse doesn't train AI on your content, sell your data, or show ads (Morse privacy policy), and because we don't store chats, we usually have very little to give authorities. Your history is kept in your browser, so clearing the browser or deleting your account removes it for good, and Morse can't recover it. Keep a copy of anything you need.
You can send a first message from the Morse home page without an account, or start free with no card needed.
Common questions
Does data residency cost extra?
Sometimes. OpenAI includes it at no additional cost for ChatGPT Enterprise and Edu, but its API charges a 10% uplift for eligible models released on or after March 5, 2026. Anthropic bills US-only inference at 1.1 times its standard rates.
Is data residency the same as zero data retention?
No. Residency decides where a stored copy lives, and zero data retention means the provider keeps no copy at all. OpenAI's first European API offer combined the two, saying requests in those projects were handled in-region "with zero data retention."
Can you change a data residency region after setup?
Not always. Anthropic says a workspace geo is set when the workspace is created and "can't be changed afterward." OpenAI says a change to inference residency applies only to new conversations, not ongoing ones.
Does data residency mean my data is encrypted?
Not by itself, since residency is about location. OpenAI lists encryption as a separate feature: AES-256 at rest and TLS 1.2 or later in transit. It says Enterprise Key Management lets customers bring their own keys for stored content.