The significance of regional data centers in cloud computing is rooted in their ability to enhance service performance and compliance. By situating data centers closer to users, cloud providers can reduce latency, ensuring faster access to applications and data. Regional data centers also play a crucial role in meeting regulatory compliance requirements, particularly concerning data sovereignty, by storing data within local jurisdictions. This is vital for organizations handling sensitive information, as it assures clients of their data security and adheres to regional laws. Overall, these centers improve reliability and user experience in cloud services.