A United States-based cloud-hosting provider wants to expand its data centers to new international locations. Which of the following should the hosting provider consider first?

While cybersecurity is an important consideration, the risk of hackers is a secondary concern compared to compliance with local data protection laws. Understanding the regulatory environment is fundamental to establishing a secure infrastructure, as failure to comply with regulations can lead to breaches and legal issues that outweigh the concerns of external hacking threats.

Though existing contractual obligations are important, they generally follow the regulatory framework of the regions in which the provider operates. If the provider does not first address local data protection regulations, existing contracts may become void or problematic if they conflict with new laws in the international locations.

Time zone differences can affect operational efficiency, but they are a logistical issue that can be managed once the legal and regulatory frameworks are established. Compliance with local data protection regulations is a priority that must be addressed before logistical concerns can be effectively tackled.