A U.S.-based cloud-hosting provider wants to expand its data centers to new international locations. Which of the following should the hosting provider consider first?

Expanding data centers internationally requires understanding the legal landscape of each new location. Local data protection regulations, such as GDPR in Europe or similar laws in other regions, dictate how personal data must be collected, stored, processed, and transferred. Non-compliance can lead to severe penalties, including hefty fines and reputational damage. While risks from hackers, contractual obligations, and time zone differences are important considerations, regulatory compliance is a foundational requirement that must be addressed first to ensure legal operation. Failing to comply with local data protection laws can prevent the provider from operating in those regions entirely.