Cloud computing brings frequent cross-border transfer of personal data, which challenges jurisdiction of traditional privacy laws. Traditional jurisdiction is based on nationality, territory and location of equipment, but cloud computing causes puzzlement to adoption of those principles and cannot well solve the problems like “onward transfer”. A new jurisdiction theory should be established according to characteristics of cloud computing, preferring nationality to territory, changing restriction on place of storage to that of illegal disclosure to the third party, and adopt encryption of the personal data in c loud computing.