Excerpt from Neowin Article, Published on May 8, 2025.
OpenAI has taken a major step toward enhancing compliance and data sovereignty for its enterprise users in Asia. In a move that aligns with rising regulatory demands, OpenAI announced support for data residency in Japan, India, Singapore, and South Korea. This new capability is available across ChatGPT Enterprise, ChatGPT Edu, and the OpenAI API Platform, enabling organizations to store customer data at rest within their respective countries. With this update, OpenAI strengthens its position in the enterprise AI space by addressing growing concerns around data localization and compliance. Conversations with ChatGPT, custom GPT interactions, and uploaded files will now be handled in accordance with local data residency regulations. OpenAI emphasized that these changes will help businesses better comply with data privacy laws such as GDPR and local regulations specific to each region.
OpenAI also clarified that API Platform users can activate data residency, ensuring data remains within the selected region. This enhancement is part of OpenAI’s broader commitment to enterprise-grade security. The company highlighted its use of AES-256 encryption for data at rest and TLS 1.2+ for data in transit to ensure confidentiality and integrity. Another key assurance from OpenAI is that customer data from business plans and the API will not be used to train its models unless customers explicitly opt in. In addition, OpenAI provides a comprehensive Data Processing Addendum (DPA), which outlines responsibilities under regulations like GDPR and CCPA. The company also complies with frameworks like CSA STAR and SOC 2 Type 2.
This expansion of data residency demonstrates OpenAI’s continued focus on enterprise trust, security, and regional compliance. As AI adoption accelerates across Asia, OpenAI’s latest move ensures businesses can confidently integrate AI solutions without compromising on local legal and data protection requirements.
To delve deeper into this topic, please read the full article Neowin.
