Cloud leaders including Amazon.com, Microsoft, Google, IBM, and upstart DigitalOcean are spending tens of billions of dollars to construct massive data centers around the world. Microsoft alone puts its total bill at $15 billion. There are two main reasons for the expansion: First, the companies have to set up more servers near the biggest centers of Internet traffic growth. Second, they increasingly have to wrestle with national data-privacy laws and customer preferences, either by storing data in a user’s home country, or, in some cases, avoiding doing just that.

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