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SY0-701 · Question #21

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?

The correct answer is A. Local data protection regulations. Local data protection regulations are the first thing that a cloud-hosting provider should consider before expanding its data centers to new international locations. Data protection regulations are laws or standards that govern how personal or sensitive data is collected…

Submitted by javi_es· Mar 6, 2026Security program management and oversight

Question

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?

Options

  • ALocal data protection regulations
  • BRisks from hackers residing in other countries
  • CImpacts to existing contractual obligations
  • DTime zone differences in log correlation

How the community answered

(57 responses)
  • A
    82% (47)
  • B
    11% (6)
  • C
    5% (3)
  • D
    2% (1)

Explanation

Local data protection regulations are the first thing that a cloud-hosting provider should consider before expanding its data centers to new international locations. Data protection regulations are laws or standards that govern how personal or sensitive data is collected, stored, processed, and transferred across borders. Different countries or regions may have different data protection regulations, such as the General Data Protection Regulation (GDPR) in the European Union, the Personal Information Protection and Electronic Documents Act (PIPEDA) in Canada, or the California Consumer Privacy Act (CCPA) in the United States. A cloud-hosting provider must comply with the local data protection regulations of the countries or regions where it operates or serves customers, or else it may face legal penalties, fines, or reputational damage. Therefore, a cloud-hosting provider should research and understand the local data protection regulations of the new international locations before expanding its data centers there.

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