If Azure geographies ensure that they preserve data residency within geographical boundaries. Then how does Replication across the globe happen? On this page https://docs.microsoft.com/en-gb/learn/modules/intro-to-data-in-azure/2-benefits-of-using-azure-to-store-data Point # 2 of ‘Benefits of using Azure to store data’
You choose the Azure regions to which you replicate your data, if you replicate it at all. You can therefore easily ensure that you comply with data residency requirements.