Why Data, Technology, and Innovation Depend on Sovereignty: A Look at Global Power Structures



Take India, for example. The country prides itself on being a global IT hub, yet most of its data isn’t even stored within its own borders. Where does all this Indian data actually reside?


The answer: The United States, Taiwan, Singapore, Ireland, and a handful of other foreign nations. In fact, only a meager 2.88% of India’s total data (in Zettabytes) is stored in Mumbai. The vast majority of Indian user data sits on servers owned by foreign tech giants, primarily in the U.S.


Now, let’s go one step further. Who has ultimate authority over this data?


Once again, it’s the United States. Thanks to the CLOUD Act (Clarifying Lawful Overseas Use of Data), American authorities have the power to access and regulate data stored on U.S.-controlled servers, regardless of where it originates.


Think about this: In India, if law enforcement wants basic metadata (not even full messages) from someone’s Instagram account, they must go through an exhaustive process and obtain a federal court order from U.S. authorities.


Now, replace India with Singapore, Malaysia, Japan, Germany, the UK, Canada, France, Russia, and South Korea—and the reality remains the same.


Despite these nations being technologically advanced and economically strong, they still lack full control over their own citizens' data. This means that major companies like Google, Amazon, Facebook, Instagram, and WhatsApp—all American-owned—dictate how and where their users' information is stored and who gets access to it.


But now, let’s ask an interesting question:


Which country is the exception?


Which nation ensures that its citizens' data stays completely within its own borders, is fully protected, and is accessible at any time without relying on foreign approval?


The People's Republic of China.


This is why China has been able to develop its own cutting-edge AI technologies—platforms like DeepSeek, Qwen 2.5, Kimi, and Pangu—without external interference. Unlike other nations, China enjoys unrestricted access to every Zettabyte of data generated within its borders. In addition, the Chinese government also has control over 70% of the data generated in Hong Kong and Macau today.


Why does this matter? Because data is power.


To understand just how much power the U.S. holds in the digital world, consider this:


The global cloud computing market is dominated by just five companies—Google, Microsoft, DigitalOcean, IBM, and Amazon. Together, they control a staggering 84.5% of cloud users across 146 countries.


And the remaining 15.5%?


That’s controlled by Tencent, Alibaba, and Huawei—Chinese firms that dominate 100% of the cloud market within Mainland China and also hold 10.2% market share in countries like Saudi Arabia, the UAE, Russia, Singapore, Malaysia, Indonesia, Thailand, and Pakistan.


Apart from China, who else has a significant share of the cloud computing space? No one. Zip. Zilch. Nada.


Dependence on Foreign Technology: The Case of India’s Defense Industry


Let’s shift our focus from data sovereignty to another crucial area—military technology.



Take India’s air force, for instance. Why is the country still operating fourth-generation aircraft, with no more than 20–30 fully operational fighter jets?


The answer lies in dependency.


India’s fighter jets rely entirely on foreign technology:

  • Engines and propulsion systems? The U.S.
  • Advanced radar technology? Israel.
  • Rear wind avionics? Belgium.
  • Wind tunnel core technology? CNES (France).


Now, imagine a scenario where the U.S. and European Union decide to cut India off from these critical technologies for just 10 years. The result? India would be pushed decades backward in military advancements.


And once again, this isn’t just India’s issue. If you replace India with Pakistan, Bangladesh, Malaysia, South Korea, Japan, Canada, the UK, and even Germany, the situation remains the same—these nations all depend on external powers for their defense technology.


Now, let’s flip the question:


Which countries can independently develop cutting-edge Scramjet and Ramjet engines, advanced radar systems, and indigenous wind tunnels—without depending on the West?


The answer: Russia, Sweden, France, and—most notably—China.


China has developed its own JF-17, J-36, and J-35 fighter jets without relying on U.S. or EU technology.


No external nation can dictate or control China’s military advancements, making it one of the few truly self-sufficient superpowers when it comes to defense technology.


Electric Vehicles: The Future of Transportation and Who Controls It


Let’s talk about another emerging industry—Electric Vehicles (EVs).


EVs are not just about cars—they require an entire ecosystem of advanced battery technology, refined materials, and production platforms that make them viable and competitive.


Now, who controls the supply of refined lithium, manganese, cobalt, and molybdenum—the essential materials required to produce EV batteries that can last 600+ km per charge?


Once again, the answer is China.


And what about the manufacturing process?


China has developed a vertically integrated production model that allows its companies to produce electric vehicles at 52% of the cost of traditional Western automakers who rely on separate suppliers. This means that Chinese EVs are not only cheaper but also more efficient to manufacture.


Who dominates the most advanced LiDAR (Light Detection and Ranging) technology, essential for self-driving vehicles?


Who can produce EVs without depending on external technology from any country?


You guessed it—China.


The Bigger Picture: Why China Stands Apart

China’s dominance in data, military technology, and electric vehicles isn’t an accident. It stems from a deliberate national strategy based on self-reliance in critical industries.


Chinese President Xi Jinping put it best:

Critical technologies are priceless. They cannot be purchased, begged, or borrowed. They have to be owned by us.


This mindset is what enables China to stand firm against the U.S. and Western influence. Unlike most nations, China does not rely on foreign corporations or governments to access the technology it needs to thrive.


But here’s the key takeaway: China is still far from achieving its ultimate vision.


Despite its advancements, the country continues to push toward complete technological independence—from AI to aerospace to quantum computing. China’s long-term goal is not just self-sufficiency but global leadership in innovation.


And as history has shown, the nations that control technology and data ultimately control the future.


Conclusion 


The landscape of global power is increasingly defined by control over technology, data, and innovation. As we've explored, China's deliberate strategy of self-reliance has allowed it to build formidable capabilities across sectors that are vital for modern economic and military strength. For other nations, the lesson here isn't about imitating China's model wholesale—every country has unique strengths and challenges—but rather about recognizing the importance of developing critical technologies domestically.


For India and other countries that currently rely heavily on external powers for data storage, defense technology, or manufacturing innovations, there’s an opportunity to re-evaluate national strategies. Investing in homegrown tech ecosystems, supporting local innovators, and fostering partnerships that emphasize mutual technological growth can pave the way for greater independence and security.


The global community can also learn from this by promoting international frameworks that respect data sovereignty, encourage technological collaboration without coercion, and ensure that advancements in AI and cybersecurity are shared for the collective good.


Ultimately, the path forward involves balancing global interdependence with robust national capabilities. As the world becomes more connected, having the resilience to innovate independently while collaborating globally will define the future leaders of technology and, by extension, the world.

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