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when i have a Website at siteground which is hosted on Google Cloud in the Netherlands and i want to connect it to google sql. Do i need to encrypt the connection? Because the connection should only be within the google datacenter without going outside. I look forward to your response.

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Yes. This is called defense in depth. These days it costs nothing to have an encrypted database connection (in terms of monetary $, in terms of setup time, in terms of latency or bandwidth - all of them are irrelevant on modern systems).

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