Texas SB 1188 and Data Localization

by | Nov 21, 2025 | Uncategorized

What Is Texas SB 1188?

Effective January 1, 2026, Texas Senate Bill 1188 introduces a new data-localization requirement for electronic health records (EHRs).
The law mandates that patient data belonging to Texas residents must be stored and recoverable within the United States including data managed by third-party cloud or backup providers.

Key Takeaways

  • EHRs of Texas patients must be physically maintained within the U.S. or its territories.
  • Applies to any subcontractor or cloud backup service that stores, transmits, or retrieves EHR data.
  • Requires technical, administrative, and physical safeguards to protect data integrity.
  • Violations can result in civil penalties of up to $250,000 for willful misuse.
  • Storage / localization requirements take effect January 1, 2026; other provisions begin September 1, 2025.

Why This Matters for Healthcare and Backup Vendors

Texas SB 1188 shifts the conversation from “Is my data secure?” to “Where is my data stored and can we prove it?”

For healthcare practices, IT consultants, and backup vendors, the implications are clear:
If your backup infrastructure uses multi-region public clouds or offshore storage, you could soon be non-compliant under state law.
Even if your systems are encrypted, if they reside outside U.S. jurisdiction, you may not meet Texas’s residency standard.

How Central Data Storage (CDS) Keeps You Compliant

CDS has been ahead of this shift for years delivering U.S.-based, HIPAA-aligned, ISO 27001-certified backup and recovery since day one.

  1. U.S.-Based Private-Cloud Infrastructure
    Your backups never leave U.S. soil. CDS operates its own U.S. based data centers that provide clear data-residency proof for SB 1188 compliance.
  2. Verified, Clean Recovery
    Every backup is malware-scanned and integrity-checked before restoration ensuring your recoveries are clean and compliant.
  3. Audit-Ready Documentation
    CDS provides written data-residency attestations and compliance letters the exact documentation Texas healthcare organizations will need to satisfy audits under SB 1188.
  4. HIPAA + ISO 27001 Controls
    Our framework aligns directly with SB 1188’s requirements for confidentiality, integrity, and availability of health records reinforcing trust, not just compliance.

What Healthcare Organizations Should Do Now

  1. Map your data flow: Identify where all EHR backups physically reside.
  2. Ask your vendors for proof of U.S. data storage.
  3. Update BAAs and SLAs to require physical U.S. residency.
  4. Verify recovery integrity: Test and document clean recovery processes.
  5. Prepare before January 1, 2026  early readiness prevents audit risk.

Talk with an expert

The Bigger Picture: Data Sovereignty Is the New Standard

Texas SB 1188 isn’t just a local law, it’s a sign of what’s coming nationwide.
States are moving toward data sovereignty: requiring sensitive information to remain within U.S. jurisdiction for privacy, security, and accountability.

At Central Data Storage, we built for this moment a verified U.S.-based recovery platform trusted by healthcare, dental, and IT providers across the country.
Because when it comes to compliance, location is protection.

Ready for Texas SB 1188 Compliance?

Get a free Data Assessment and see how your current backup strategy aligns with Texas’s new requirements.

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📞 Contact CDS 📧 cds@centraldatastorage.com

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