In an era that is increasingly being defined by artificial intelligence (AI) and escalating data demands, the global digital landscape is undergoing a profound transformation.

The developments in AI architecture and the integration and sharing of data across multiple international and regional geographies are happening at a rapid pace – and with it, the need to establish and agree on a universal framework to accommodate and respect the sovereignty of data across multiple nations.

Data centers, once mere warehouses of information, are now the backbone of AI-driven economies. In an ever-expanding universe of digital information and content, data center operators are now faced with the daunting task of balancing operational efficiencies against the stringent need for regulatory compliance.

As governments worldwide tighten regulations around data residency, cybersecurity, and AI governance, multinational companies face a complex challenge: how to maintain seamless operations while adhering to diverse and often conflicting legal frameworks.

The data sovereignty challenge: Balancing compliance and efficiency

Data sovereignty, the principle that data is subject to the laws of the country where it is stored, has emerged as a defining issue for global enterprises. From the European Union’s General Data Protection Regulation (GDPR) to Saudi Arabia’s Personal Data Protection Law (PDPL), geographic regions are enforcing stringent rules to protect citizens’ data and reduce reliance on foreign providers. The EU’s post-Schrems II invalidation of the Privacy Shield in 2020, for instance, underscored the heightened concern about US surveillance, prompting nations like France and Germany to advocate for sovereign cloud solutions. Similarly, emerging markets in Africa and South America are crafting their own data residency laws, adding layers of complexity for multinational operators to an already complex regulatory landscape.

For many of the larger multinational corporations and network operators like Angola Cables, which manages an extensive subsea cable and international backbone network that accesses over 900 data centers and 300 cloud on-ramps across Europe, Africa, Brazil, and the US, the solution lies in a strategy of regional adaptability and infrastructure resilience.

By leveraging distributed, sovereign-compliant infrastructure, multinationals can tailor their operations to local regulations while maintaining global connectivity. This approach involves connecting to localized data centers, adopting and adapting hybrid cloud models, and engaging in strategic partnerships with local operators and service providers who understand the regional regulatory frameworks. These efforts ensure sensitive data remains within jurisdictional boundaries while less critical operations utilize hyper-connected global clouds.

Of course, this also necessitates the deployment of advanced security protocols and practices across our network, such as encryption and data anonymization that are compliant with global standards like ISO 27001, but this fosters trust and builds credibility across jurisdictions.

The integration of programmable infrastructure and cloud-Edge capabilities into cross-border networks and operations further enhances flexibility, allowing customers to localize data processing without duplicating costly physical assets. This hybrid model, underpinned by scalable, region-sensitive architecture, positions compliance as an intrinsic design principle rather than an afterthought. As data sovereignty laws proliferate, governments must support these efforts through fundamental research, clear regulatory frameworks, and partnerships with industry leaders to avoid a fragmented digital landscape that could stifle innovation. This is especially true, now more than ever, within an African market context.

Securing the arteries of the Internet: Submarine cables and critical infrastructure

Submarine cables, which carry over 95 percent of global Internet traffic, are the unsung heroes of digital connectivity. Yet, their protection often lags behind terrestrial infrastructure, leaving them vulnerable to physical damage, cyberattacks, and geopolitical tensions. As AI and hyperscale data applications increase traffic and latency sensitivity, securing these cables is paramount. As a result, there is a case to be made in advocating for harmonized governance frameworks that recognize submarine cables as critical infrastructure, emphasizing cross-border incident reporting, threat intelligence sharing, and redundancy planning.

Regulation plays a pivotal role here, but it must be collaborative and forward-looking. National regulators and international bodies, such as the International Telecommunication Union (ITU) – and the recently formed International Advisory Body for Submarine Cable Resilience, should enforce standards for cable landing protection and sovereign traffic routing.

The private sector’s role in shaping governance

As AI reshapes digital infrastructure, data centers are evolving into ‘AI factories’, enabling low-latency applications in finance, healthcare, and autonomous systems while meeting stringent regulatory demands. This transformation underpins the need for private sector alliances to bridge the gap between policy ambitions and operational realities. Industry consortia, such as those within the ITU or the World Economic Forum, can drive interoperable standards, foster innovation in green data center design, and ensure governance frameworks reflect the diversity of infrastructure – from hyperscalers to regional hubs.

Private sector bodies are also uniquely positioned to advocate for emerging markets, ensuring global standards do not marginalize regions like Africa or South America. By participating in regulatory policy formulation and promoting responsible innovation, these consortia can help data centers serve as trust anchors, offering AI auditing capabilities and compliance-ready infrastructure.

A call for collaborative digital governance

The convergence of data sovereignty, AI governance, and critical infrastructure security demands a new model of digital governance – one where compliance, innovation, and resilience are seamlessly integrated. Multinational companies must adopt flexible, regionally sensitive strategies to navigate varying regulatory landscapes, while governments and private operators must collaborate to secure critical infrastructure like submarine cables. Private sector consortia, with their ability to translate operational insights into policy, are indispensable in shaping standards that promote trust, sustainability, and inclusivity.

Moving into the new and uncharted complexities of an AI-driven world, the question is not whether we face a new digital colonization, but how we can prevent it.

By fostering transparent dialogue and agreeable frameworks, we can ensure that digital infrastructure serves the global public good, empowering regions to thrive in the AI economy without sacrificing sovereignty or security. The path forward lies in partnership, innovation, and a shared commitment to a resilient and equitable digital future.