Data residency is the requirement that data be stored and processed inside a defined geographic boundary, and in an AI stack it covers prompts, completions, embeddings, logs and sometimes model weights, not just the rows in a database AvePoint. The failure that matters in a model gateway is quieter than a misconfigured database: the model is compliant, the provider is compliant, and the request still leaves the region because nothing at the control plane checked.
Gateway vendors say this directly. A comparison of AI gateways argues that data residency is enforced at the gateway layer, and that even when underlying models are compliant, data can cross regions if the gateway is not explicitly designed to enforce residency constraints TrueFoundry. Vercel's regional inference documentation is blunter about defaults: with no region pinned, the gateway picks whichever region can serve the model, and that region can change per request and may sit outside the user's jurisdiction Vercel.
That gives you the first design constraint. Residency cannot be a default. It has to be a lookup that runs before the provider call and fails closed. Vercel does exactly that: if the gateway cannot honor the chosen region, the request fails rather than silently running somewhere else Vercel.
The second constraint comes from the shape of the requirement itself. Residency is not one rule. It is at least three: storage residency (data at rest stays in region), processing residency (inference runs in region), and end-to-end residency (every component, including the gateway, log store and key management, stays in region) Aptible. Most regulatory requirements specify storage residency at minimum, and strict GDPR interpretations effectively require processing residency as well Aptible. A prose runbook cannot express three tiers per route. A table can.
One more distinction worth pinning down before you write the table: residency is about where the disks sit, while sovereignty is about whose laws can compel access to the data regardless of location, and selecting a local cloud region is often necessary but not sufficient for the second AvePoint. If your reviewers conflate the two, every row in the table will be argued about twice.



