As a UK govt agency, our assurances teams are asking us this question. We understand that the Confluence SAAS service is configurable to host data within UK only data centres only.
@Richard Jolly this article on Data Residency should help: https://support.atlassian.com/security-and-access-policies/docs/understand-data-residency/. If you need additional details, I'd suggest contacting Atlassian Support directly.
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