Definition
A policy tension between governments that require data to be stored within their national borders (data localisation) and the practical reality that AI models are trained and operated across global infrastructure. Singapore and ASEAN partners have publicly warned that restrictive localisation rules can fragment AI development and reduce regional competitiveness.
Why it matters
Boards and legal teams operating across Asia-Pacific must navigate conflicting pressures: complying with local data laws while maintaining access to global AI infrastructure and partnerships — a tension that is actively shaping trade policy and AI governance negotiations.