Data residency for LLMs: what GDPR requires and your three options
Short answer: GDPR does not require personal data to stay in the EU. It lets data leave only with a valid transfer mechanism. Data residency for LLMs comes down to three options: use the EU region of a hosted API, tokenize before the API call, or run the model yourself. Only the third keeps data out of the US in the literal sense. A procurement lead at a European customer sends your team a one-line requirement: “keine Daten in die USA.” No personal data in the United States.