Hey there, it was another Tuesday with my young tech enthusiast. We reflected on the computer-related exams they wrote last week, and then we shared a few discoveries in the tech world, especially with artificial intelligence. Today, it was a follow-up on last week's coverage about OpenAI. Incidentally, I read about an African tech mogul who built a local data storage over the years, which is presently gaining prominence. It was the first time I learnt about that. Hence, reading the news that OpenAI has launched a game-changing data residency program in Asia, letting organizations store their data locally, made more sense. It is a huge move to make AI more secure and accessible in Asia. Let's talk about it.
Earlier this year, OpenAI rolled out a similar program in Europe, which enables organizations in Japan, India, Singapore, and South Korea to store their data locally, ensuring compliance with regional data sovereignty regulations while leveraging OpenAI’s cutting-edge AI technologies. The program, designed for users of ChatGPT Enterprise, ChatGPT Edu, and the OpenAI API, is OpenAI’s commitment to enhancing data security, privacy, and regulatory compliance for its enterprise and educational customers across the region.
The Concept of Data Residency
Data residency, the practice of storing data within specific geographic boundaries, has become a critical concern for organizations operating in Asia, where stringent data protection laws and sovereignty requirements are increasingly shaping the digital landscape. Countries like India, with its Digital Personal Data Protection (DPDP) Act, and Japan, with its Act on the Protection of Personal Information (APPI), have implemented regulations mandating that certain types of data, such as personal, financial, or government-related information, remain within national borders. Non-compliance can result in hefty fines, legal repercussions, and loss of customer trust, making data localization a top priority for businesses and institutions.
OpenAI’s new program directly addresses these challenges by allowing eligible customers to store their data at rest in one of four supported Asian countries: Japan, India, Singapore, or South Korea. For organizations using ChatGPT Enterprise or ChatGPT Edu, this means that all customer content, including prompts, conversations, uploaded files, images, and custom GPTs, can be stored locally, ensuring adherence to regional regulations. Similarly, API customers can configure new projects to process and store data within the selected region, with the added option of zero data retention for API requests, meaning model requests and responses are not stored on OpenAI’s servers.
OpenAI emphasized customer ownership and control, and this resonates strongly with enterprises handling sensitive proprietary information, customer data, or research materials, particularly in tightly regulated sectors such as finance, healthcare, and government.
From Europe to Asia
The Asia data residency program builds on the framework established by OpenAI’s European initiative, launched in February 2025. In Europe, OpenAI introduced data residency to help organizations comply with the General Data Protection Regulation (GDPR) and other regional privacy laws. The European program allows customers to store data in European data centers and offers zero data retention for API requests, a feature now extended to Asia. The success of the European rollout, which has been praised for enabling organizations to balance AI adoption with regulatory compliance, has paved the way for OpenAI’s expansion into Asia.
The Asian program, however, is tailored to the unique regulatory and cultural landscape of the region. For instance, India’s DPDP Act, set to be enforced by the Ministry of Electronics and Information Technology (MeitY), includes provisions to prevent foreign companies from training AI models on Indian data without local storage. OpenAI’s commitment to storing data locally and not using customer data for model training (unless explicitly opted into) aligns with these requirements, positioning the company as a trusted partner for Indian organizations.
Data Residency means Robust Security and Compliance Features
OpenAI’s data residency program is underpinned by a suite of enterprise-grade security and compliance features designed to safeguard customer data. The company employs advanced encryption techniques, including AES-256 for data at rest and TLS 1.2+ for data in transit, to ensure confidentiality and integrity during storage and transmission. Additionally, OpenAI adheres to global data protection standards, such as GDPR, the California Consumer Privacy Act (CCPA), CSA STAR, and SOC 2 Type 2, and offers a comprehensive Data Processing Addendum (DPA) to clarify roles and responsibilities under privacy regulations.
A key feature of the program is OpenAI’s policy of not training its AI models on customer data from ChatGPT Enterprise, ChatGPT Edu, or API users unless explicitly authorized by the customer. This opt-in approach addresses concerns about data privacy and intellectual property, particularly for organizations developing proprietary AI solutions or handling sensitive information.
Asia has seen a surge in demand for AI tools, driven by rapid digital transformation across industries. OpenAI already supports a wide range of partners in Asia, including major corporations like SoftBank, Kakao, Grab, and Singapore Airlines, as well as startups, enterprises, and educational institutions. The data residency program is expected to further accelerate AI adoption by addressing one of the primary barriers to entry: data sovereignty.
Beyond compliance, OpenAI’s data residency program offers potential performance benefits. Storing data closer to the point of use can reduce latency, improving the speed and efficiency of AI applications. This is particularly valuable for enterprises relying on real-time AI processing, such as customer service chatbots, financial analytics, or educational platforms.