For what I'd call "stupid" compliance (GDPR,...), allowing for regional storage of data at rest is definitely important.

For any internal data where protecting it is a core interest of the company you'll also either need to prove your whole handling is trustworthy or you'll need to design a process that can do all the steps (preprocessing/vectorization/...) on customer controlled hardware.

If your solution can run in a customer owned environment without any external dependencies, that could save you a lot of auditing/certification.