The Data Residency Contract Your Provider Honored at the API Boundary and Broke at the Cache
Your residency audit traced every outbound request from the tenant's traffic, watched it terminate on a hostname in Frankfurt, and signed off. The audit was correct about everything it measured. It was also looking at the wrong layer. The request went to the EU. The bytes that satisfied the request — the cached prefix the provider hashed and pulled from the nearest available node — lived in us-east-1. Your regional endpoint promised you a destination. The cache promised nothing, because the cache was a different product, governed by a different SLA, designed for cost rather than for compliance.
The customer's auditor caught it. Not yours. A different vendor's incident report mentioned that prompt cache placement was decoupled from inference region, and the customer's GRC team asked the obvious follow-up question: where do our prefixes go? The contract amendment to close the gap took ninety days. The renewal got suspended. The team that wrote the integration had done nothing wrong by the documentation they were handed.
