Olga Belyakova, Partner and Co-head of the Technology, Media and Communications sector group in Central and Eastern Europe, CMS
What Is digital sovereignty?
In plain terms, digital sovereignty refers to the ability of a nation, organization, or entity to maintain control over its digital infrastructure, data, and technological systems. It ensures that decisions about how digital resources are accessed, stored, and utilized are made within the sovereign entity’s or government’s jurisdiction, free from undueinfluenceordependencyonexternalactors.
The concept of digital sovereignty has evolved significantly over the past 10–15 years. Initially, digital sovereignty was closely tied to concerns about data privacy and the storage of sensitive information. But this gained traction following 2010s global surveillance disclosures and generally acceleration of digitalisation in various sectors (specifically during COVID-19).
In Europe, this led to landmark regulations like the General Data Protection Regulation (GDPR) in 2018, which emphasized the protection and localization of citizens’ data. Similarly, China’s Cybersecurity Law of 2017 implemented stringent data localization requirements. Meanwhile, the US focused on enhancing its own technological leadership with initiatives like the CHIPS and Science Act to secure semiconductor manufacturing. The rise of cloud computing, artificial intelligence (AI), and global platforms like Google, Amazon, and Microsoft further emphasised the need for digital sovereignty as nations realised dependency on these tech giants.
Today, digital sovereignty extends beyond data to encompass control over hardware, software, communication networks, and even emerging technologies like AI, 5G and quantum computing. Real-world examples include the European Union’s Gaia-X project,1 which aims to create a cloud ecosystem independent of non-European providers, and India’s push for indigenous digital payment systems like UPI (Unified Payments Interface).2
Why is digital sovereignty so critical?
Digital sovereignty is no longer an option – it is a necessity. Digital sovereignty provides the background for enforcing ethical standards and protecting human rights in the digital reality. It supports digital humanism by encouraging an open, secure, and human-centric digital ecosystem.
Beyond digital humanism aspects, digital sovereignty is extremely important due to national security concerns. Nations cannot afford to rely only on foreign infrastructure for critical services like communication, energy grids, and defence. Dependency exposes them to potential surveillance, sabotage, or data exploitation.
But it is not only national security issues that are driving digital sovereignty.
Data privacy and citizen trust
Data is often described as the “new oil,” and protecting it is vital for safeguarding citizens’ privacy and trust. Regulations like GDPR demonstrate the global trend toward asserting control over personal data.
Economic competitiveness
Controlling digital infrastructure ensures that nations remain competitive in the global economy. Sovereignty over AI, cloud services, and semiconductors can define the future of innovation and economic growth.
Sovereignty over AI is particularly topical and interesting. The EU and US approach AI sovereignty differently due to contrasting regulatory philosophies and priorities. The EU emphasizes strict regulation, transparency, and ethical frameworks to ensure AI aligns with European values, privacy, and human rights. Initiatives like the AI Act aim to establish comprehensive, enforceable standards and promote AI sovereignty by reducing reliance on external technologies while fostering innovation.
In contrast, the US adopts a more non-intervention approach, focusing on fostering innovation and maintaining global AI leadership through private sector-driven advancements, with limited federal regulation. The vivid illustration of this approach was an executive order signed by President Trump on January 23, 2025, mandating the development of an AI action plan within 180 days to “sustain and enhance America’s global AI dominance”, by that intensifying efforts to assert US sovereignty in AI.
Geopolitical angle
In an era of increasing digital dependency, nations that lack sovereignty risk being disempowered in global decision-making or affected by dominant tech players.
Digital sovereignty is more than a matter of national pride – it is an essential element and strategic necessity. It touches upon fundamental aspects of modern governance, including security, economy, and citizens’ rights, therefore it cannot be entirely avoided.
The role of digital defence in enabling digital sovereignty and supporting Digital Humanism
Digital sovereignty cannot be considered in isolation, it goes hand-to-hand with digital defence.
Digital defence is the protective shield that ensures the materialisation of digital sovereignty. Without robust digital defence systems and strategies, there is an enormous chance a nation’s control over its digital resources will be compromised.
Protecting critical infrastructure like power grids, healthcare systems, and financial networks is essential to maintaining sovereignty. Cybersecurity frameworks play an essential role in that process. This includes implementing cybersecurity standards, deploying zero-trust architectures, and establishing incident response strategies.
Nation-states, criminal organizations, and cyber- criminals pose constant threats to sovereignty. Smart and advanced digital defence systems help governments and organisations detect, mitigate, and respond to attacks, ensuring continuity of operations. A good example is Estonia, a pioneer in e-governance, developed a data embassy system, being ‘an extension in the cloud of the Estonian government, which means the state owns server resources outside its territorial boundaries’.3 In other words, it is a backup of critical government data abroad, ensuring resilience against cyberattacks.
Digital defence plays a crucial role in advancing digital humanism by safeguarding individuals and societies from misinformation and digital manipulation, ensuring that technology remains aligned with human rights and democratic values. Protection of various data is a core of digital sovereignty, and defence strategies ensure that sensitive data remains within sovereign control empowering people to engage in the digital world securely by fostering trust and inclusivity. Such defence technologies as encryption, secure cloud services, and data localization laws are key to preventing unauthorized access.
Digital defence strategies also reduce dependency on foreign technology and include, inter alia, building domestic capabilities in hardware and software to avoid reliance on foreign suppliers, which could pose supply chain risks. For instance, for years, Japan (e.g. following Japan’s Strategy for Semicondactors and Digital Industry4) and South Korea5 have been buildingt up semiconductor production to reduce dependency on foreign manufacturers.
And of course we cannot stay silent about the role of AI. It is revolutionising cyber security and digital transformation more generally. AI can process vast amounts of data, detect threats in real time and even predict potential attacks; in doing so, it helps safeguard digital sovereignty.
However, AI is a double-edged sword: it can be usedbothfordefenceandoffence.Forinstance,AI driven systems can autonomously analyse satellite imagery, monitor troop movements and control autonomous weapons.
But we must remember that AI in the wrong hands can also lead to sophisticated cyber-attacks, hence the balance between leveraging Al for protection and preventing its misuse is delicate and critical.
So, digital defence is not just about preventing attacks but also about building robust, self-reliant systems that align with sovereignty goals.
The role of satellites and space technologies in digital sovereignty and defence
Satellites and space technologies are increasingly critical in the intersection of digital sovereignty and defence. These technologies provide the infrastructure for secure communication, data collection, and navigation systems essential for national and global operations.
Satellites enable encrypted communications for military, government, and emergency services, ensuring secure and sovereign information exchange.
Such systems like the EU’s Copernicus6 program provide sovereign access to Earth observation data for monitoring environmental changes, disaster response, and border security.
Space-based navigation systems such as the EU’s Galileo (Europe’s own global navigation satellite system)7 and China’s BeiDou offer alternatives to the US GPS, ensuring sovereign control over critical positioning data.
At the same time, as satellites become targets of cyberattacks, defending these assets is a priority for maintaining sovereignty. Nations are heavily investing in secure satellite technologies to prevent disruptions.
Hence, space technologies not only reinforce digital defence but also symbolize sovereignty by ensuring nations have independent access to critical services.
Collaboration vs. autonomy
The tension between collaboration and autonomy is a key challenge in digital sovereignty and defence. While autonomy ensures control, security and self-reliance, collaboration offers shared resources and global standards that foster innovation and efficiency.
The autonomy
A decent level of autonomy is essential to digital sovereignty because it ensures that a nation or organization has control over its critical digital infrastructure, technologies, and data, minimizing dependence on external players. By achieving autonomy, governments and businesses can safeguard sensitive information, enhance cybersecurity, and reduce risks associated with foreign interference or supply chain vulnerabilities. This independence may foster innovation, allowing countries to develop tailored solutions that align with their values, priorities, and regulations, such as privacy or ethical standards.
The collaboration
While autonomy makes sense in many aspects of national security, in a connected world, sovereign systems must also work together for seamless data exchange and communication to achieve the necessary level of global interoperability.
Threats like cyberattacks are global; alliances like NATO’s Cooperative Cyber Defence Centre of Excellence8 demonstrate the importance of collective defence strategies. The Paris Call for Trust and Security in Cyberspace9 is also an excellent example of promotingpromotion international cooperation to enhance cybersecurity.
The balance
Nations and organizations must carefully navigate the line between collaboration and autonomy. Regional initiatives like Gaia-X showcase how collaboration can strengthen sovereignty while adhering to shared standards. Similarly, sovereign satellite systems can operate within global frameworks for disaster response and climate monitoring.
The future of digital sovereignty lies in achieving this balance: fostering collaboration where necessary while retaining autonomy over critical systems.
To conclude, by investing in digital defence and fostering collaborative frameworks, we can uphold digital humanism by ensuring that sovereignty and global cooperation coexist. This approach will not only strengthen our ability to address shared challenges, but also promote a human-centric digital future built on trust, common ethical values and inclusivity.
- https://gaia-x.eu/ ↩︎
- https://www.npci.org.in/what-we-do/upi/product-overview ↩︎
- https://e-estonia.com/solutions/e-governance/ data-embassy/#:~:text=Data%20Embassy%20is%20an%20 extension%20in%20the%20cloud,usually%20store%20their%20 information%20within%20their%20physical%20boundaries. ↩︎
- https://www.meti.go.jp/english/press/2021/0604_005.html ↩︎
- https://www.reuters.com/technology/south-korea-roll-
out-10-bln-loans-next-year-support-chip-industry-2024-11-26/ ↩︎ - https://www.copernicus.eu/en/about-copernicus ↩︎
- https://www.esa.int/Applications/Satellite_navigation/ Galileo/Six_mind-blowing_facts_about_Galileo ↩︎
OLGA BELYAKOVA
Olga Belyakova is a Partner in the Commercial practice group in the Kyiv office of CMS Cameron McKenna Nabarro Olswang and a Co-head of the Technology, Media and Communications (TMC) sector group in Central and Eastern Europe. With over 20 years of focus in these sectors, Olga is best-placed to deliver innovative solutions and pragmatic advice on IT outsourcing, data protection, cybersecurity, gaming, gambling, cloud technology, IP and employment issues, as well as operational issues regarding data centres, AI, fintech and social media platforms.
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