A multinational company is deploying Prisma SD-WAN across North America, Europe, and Asia.

Comprehensive and Detailed Explanation

To achieve strict regional isolation where branch sites only form VPN tunnels with Data Centers in their specific region (e.g., EU branches to EU DCs only), the correct architectural feature to utilize is VPN Clusters.

In Prisma SD-WAN (CloudGenix), a Cluster defines a logical security and topology boundary for the overlay network. By default, devices may be placed in a "Default" cluster where they attempt to form a mesh or hub-and-spoke topology with all other reachable devices in that context.

To enforce the new policy:

Logical Partitioning: The administrator should create separate VPN Clusters for each region (e.g., "Cluster-NA", "Cluster-EU", "Cluster-Asia").

Assignment: The Regional Data Center IONs and their corresponding Branch IONs must be moved into their respective clusters.

Result: The Prisma SD-WAN controller dictates that devices can only establish Secure Fabric (VPN) tunnels with other devices within the same cluster. This effectively segments the global network, ensuring that an Asian branch never attempts to build a tunnel to a North American DC, satisfying the compliance requirement without complex access lists or manual tunnel configuration.

Option B (Manual Tunnels) is administratively unscalable and negates the benefits of SD-WAN automation.

Option C (Circuit Labels) is primarily for path selection and traffic steering, not for hard topology segmentation.

Option D (VRFs) is used for local Layer 3 segmentation (routing isolation) within a device, not for controlling WAN overlay tunnel formation scope.