AI-102 Plan and manage an Azure AI solution Practice Question
A company is deploying an Azure AI solution that uses Azure Cognitive Services. The solution must comply with data residency requirements that mandate all customer data be stored within a specific geographic region. Which action should the company take when creating the Cognitive Services resource?
⚠ Common exam trap
A common mix-up: candidates confuse network-level controls (like endpoint configuration or tagging) with physical data storage guarantees, mistakenly believing that a regional endpoint or a tag can enforce data residency when only the initial region selection during resource creation can do so.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Select the appropriate region during resource creation.
Data residency requirements are satisfied by physically storing customer data within a specific geographic boundary. When creating an Azure Cognitive Services resource, selecting the appropriate region (e.g., 'West Europe' or 'East US') during the provisioning process ensures that all data processed and stored by that service instance remains within that Azure datacenter region. This is the fundamental and only guaranteed method to enforce data residency at the resource level.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Apply a resource tag that specifies the region.
Why it's wrong here
Tags are metadata labels for billing, governance and filtering; they do not influence where Azure stores or processes data. Tags would be the right choice for cost allocation or policy grouping, but data residency is fixed by the region selected for the resource at creation.
- ✗
Configure the endpoint URL to point to a regional endpoint.
Why it's wrong here
The endpoint URL is the address clients call; pointing it at a regional hostname does not relocate stored customer data, which is determined by the resource's deployment region. Configuring endpoints is correct for routing or custom domain scenarios, not for satisfying residency obligations.
- ✗
Set the SKU to a tier that supports regional restrictions.
Why it's wrong here
The SKU determines pricing tier, feature set and throughput limits, not the physical location of data storage or processing. Choosing a tier would be correct when scaling capacity or enabling specific capabilities, but residency is governed by the region chosen when the resource is created.
- ✓
Select the appropriate region during resource creation.
Why this is correct
Selecting the appropriate region during resource creation pins the Cognitive Services resource to that geography, ensuring stored customer data remains within the mandated boundary. Data residency is enforced at the resource level, so the region chosen at deployment determines where data is processed and stored. Other settings do not relocate data after provisioning.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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