When Germany's largest healthcare insurer, Techniker Krankenkasse, moved patient records off AWS to a sovereign cloud in Frankfurt, the project took eighteen months and cost triple the original estimate. Episode 6 of Cloud Computing with Fexingo unpacks the data residency challenge that is quietly forcing enterprises to rethink where and how they run workloads. Lucas and Luna trace the cascade: GDPR's 'Schrems II' ruling invalidated the Privacy Shield framework in 2020, triggering a wave of localization requirements. They examine how AWS responded with its 'Digital Sovereignty Pledge' in late 2025, the emergence of EU-based cloud providers like IONOS and OVHcloud, and the operational friction of running split architectures. Along the way, they walk through a concrete example: a fintech startup that must keep transaction data in Singapore and analytics in Frankfurt, and how that doubles latency and complexity. The conversation ends on a forward-looking note: as more countries pass data localization laws — India, Brazil, South Africa — the cloud may become less a global utility and more a patchwork of regional grids.