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The Regula Badlands was an an area of space made up of intense plasma storms and gravitational anomalies located near the Federation-Romulan border in the Alpha Quadrant. While a few worlds in the Badlands, like Regula II, were inhabited, most of the planets and planetoids in the region were considered uninhabitable by the Federation due to the unstable nature of the region. (ST video game: Armada II)
In the year 2377, scouts sent out by the Romulan Star Empire discovered that the Borg had somehow established a presence in the Badlands, and assimilated a number of planets with a new type of assimilation device. The Romulans immediately shared the intelligence they had gathered with the Federation and the Klingon Empire and it was decided that Captain Jean-Luc Picard would lead a task force of Starfleet vessels into the Badlands to investigate the Borg threat. (ST video game: Armada II Intro)
After entering the region, the USS Enterprise-E and the task force encountered a large Borg force operational in the area. Thankfully, the Starfleet force was able to overcome the Borg defenses and reach the Borg's main base in the region. Located near the base was a tachyon nebula which had enabled the Borg to create a transwarp conduit, Technology 2702, to their home territory in the Delta Quadrant. (ST video game: Armada II missions: "Invasion", "Into The Breach")