Data protection and data privacy are significant challenges in cloud computing for multinational corporations. There are no standard laws to protect data across borders. The institutional and regulatory constraints and governance differ across countries. This article explores the challenges of institutional constraints faced by cloud computing service providers in regard to data privacy issues across borders. Through a qualitative case study methodology, this research compares the institutional structure of a few host countries, with regard to data privacy in cloud computing and delineates a relative case study. This article will also review the cloud computing legal frameworks and the history of cloud computing to make the concept more comprehensible to a layman.