In accordance with embodiments, there are provided mechanisms and methods for facilitating protection of data in a database environment in an on-demand services environment according to one embodiment. In one embodiment and by way of example, a method includes detecting, by a first computing device in the database environment, sensitive data associated with a user having access to a second computing device, where the sensitive data is capable of being communicated within a geographic residency. The method may further include performing, by the first computing device, secured communication of the sensitive data between at least one of multiple computing devices and multiple application frames within the geographic residency, wherein the first computing device includes a proxy server that is locally situated within the geographic residency.