OpenAI has launched data residency in Europe, allowing businesses and developers to process and store data within the region. This will help organizations meet European data sovereignty requirements while using OpenAI’s AI models and services.
Key Points:
- OpenAI’s API users can now process data in Europe with zero data retention.
- New ChatGPT Enterprise and Edu customers can store data at rest within the region.
- Existing API projects cannot be migrated to European data residency.
- The launch comes amid regulatory scrutiny of OpenAI’s data practices in Europe.
With the new data residency option, OpenAI customers using its API can choose to process data within the EU, ensuring that model requests and responses are handled entirely in-region. Importantly, OpenAI says it will not retain any data processed via the API, a measure aimed at addressing privacy concerns. Meanwhile, new ChatGPT Enterprise and Edu users can now configure workspaces to store customer content—including conversations, user prompts, and uploaded files—at rest in European data centers.
The update does not apply retroactively, meaning existing API projects must continue using OpenAI’s default global infrastructure. Customers who want to enable European data residency must create new projects in the API dashboard.\
OpenAI’s move follows increasing regulatory pressure from European data protection authorities. Several EU countries, including Spain, Germany, and Italy, have scrutinized OpenAI’s handling of user data, with Italy’s data protection agency recently imposing a €15 million fine on the company. The launch of European data residency is likely an effort to ease compliance concerns and align with the region’s strict data protection laws, such as the General Data Protection Regulation (GDPR).
Several major European companies are already partnering with OpenAI, including Spotify, Santander, and Zalando. These partnerships suggest that despite regulatory hurdles, European businesses see value in implementing OpenAI's technology while maintaining compliance with local data protection laws.
By joining major tech firms like AWS and Google in offering European data residency, OpenAI is signaling a commitment to privacy, security, and regulatory compliance. However, it remains to be seen whether these measures will satisfy European regulators, who continue to examine how AI companies handle user data at scale.