Data collaboration is increasingly transformative and necessary for organizations seeking innovation and data-driven decision-making, but it also poses privacy challenges due to the involvement of sensitive information. As privacy regulations expand across the U.S., with more states enacting data privacy laws, businesses are driven to adopt privacy-first strategies and technologies like data clean rooms. Data clean rooms are secure environments enabling organizations to collaborate on sensitive data without exposing individual identities, thus meeting compliance requirements and consumer privacy demands. Originally used in the AdTech industry, their application has broadened to sectors such as retail, healthcare, and finance, facilitating privacy-safe data collaboration and analysis. With the global data clean room market projected to reach $5.6 billion by 2030, these environments are becoming essential for modern businesses, especially as companies pivot towards first-party data strategies amid uncertainties surrounding third-party cookies. Data clean rooms incorporate governance and privacy-enhancing features like differential privacy and pseudonymization, often integrating with technologies such as Customer Data Platforms and identity resolution tools to maximize value while preserving privacy.