OpenAI expands data residency, letting 1M+ business users choose regional storage
OpenAI just rolled out something a lot of enterprise tech heads have been asking for: the chance to keep their data inside chosen geographic borders. As AI-driven workflows grow, compliance squads are under pressure to prove that sensitive info isn’t slipping into regions with tighter privacy rules. Regulators in Europe, Asia and the US are tightening standards, so regional storage feels more like a necessity than a perk.
The tech behind it isn’t rocket science, but the business side is anything but simple. It could let firms line up their AI use with internal policies and external mandates without having to build custom infrastructure. For OpenAI, offering this option also hints that they’re confident their platform can handle a wider mix of corporate scenarios.
The blog post announcing the change makes it clear the company is trying to keep pace with the shifting legal landscape its expanding customer base is facing.
"With over 1 million business customers around the world directly using OpenAI, we have expanded where we offer data residency -- allowing business customers to store data in certain regions, helping organizations meet local regulatory and data protection requirements," the company said in its blog.
"With over 1 million business customers around the world directly using OpenAI, we have expanded where we offer data residency -- allowing business customers to store data in certain regions, helping organizations meet local regulatory and data protection requirements," the company said in its blog post. However, enterprises must also understand that if they are using a connector or integration within ChatGPT, those applications have different data residency rules. When OpenAI launched company knowledge for ChatGPT, it warned users that depending on the connector they use, data residency may be limited to the U.S.
OpenAI just rolled out data-residency options for ChatGPT and the API, so companies can keep their data in the region they pick. In theory, more than a million business users could now store and run data closer to where they actually operate - something that should make it a bit easier to follow local rules. That’s a nice fix for a compliance snag many global firms said was holding back wider ChatGPT use.
Still, the announcement is vague about which exact regions are on the table, and it doesn’t spell out how cross-border data-flow controls will work. It’s also unclear whether the new framework will plug into the governance tools firms already have. For teams that have to obey strict data-protection laws, the feature looks promising, but we’ll have to see how it plays out in practice.
OpenAI’s blog says the goal is to help customers meet regulatory demands, yet there are no hard numbers on uptake or performance yet. As more enterprises start testing it, the real impact - and any hidden limits - should become a lot clearer.
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Common Questions Answered
What new capability has OpenAI added for its over 1 million business customers regarding data residency?
OpenAI now allows those customers to store their ChatGPT and API data in specific geographic regions. This regional storage helps organizations meet local regulatory and data‑protection requirements.
How does the new data residency option impact compliance for enterprises using ChatGPT?
By keeping information within chosen regions, enterprises can more easily prove that sensitive data does not cross borders with stricter privacy rules. This eases compliance with tightening regulations in Europe, Asia, and the United States.
Are there any limitations mentioned for connectors or integrations within ChatGPT under the new data residency rules?
Yes, the announcement notes that connectors or integrations may follow different data residency rules than the core ChatGPT service. As a result, those add‑ons might not automatically benefit from the regional storage guarantees.
Which specific regions are currently supported by OpenAI’s data residency offering?
The article does not detail the exact regions that are now supported. OpenAI has announced the capability without providing a list of eligible geographic locations.