4. Sovereignty 2.0: Adapting the Westphalian Principle to the Technopolar Era

This chapter builds upon the evolving concept of sovereignty in the digital age, introducing the idea of Sovereignty 2.0—a paradigm shift where state power is increasingly defined by infrastructural and technological capabilities rather than just territorial control. In the technopolar world, sovereignty encompasses the ability to regulate data, control algorithms, and secure hardware infrastructure. The chapter focuses on data sovereignty as the first critical pillar of this transformation, exploring how states seek to reclaim control over information flows by asserting legal jurisdiction over data generated within their borders. Case studies from the EU, China, India, and Brazil illustrate diverse strategies, from regulatory frameworks like the GDPR and China’s strict localization mandates to emerging cloud infrastructure initiatives. The rationale for data sovereignty includes national security, privacy, economic development, and resistance to digital dependency. Yet, the chapter also highlights tensions: heavy-handed localization may fragment the internet, raise costs, and undermine global interoperability. Moreover, foreign surveillance, corporate dominance, and technological asymmetries continue to threaten genuine sovereignty. As states navigate this complex terrain, they must balance openness with autonomy and security with freedom. This chapter sets the foundation for exploring algorithmic sovereignty in the next section, where data’s strategic value becomes most apparent through its role in AI governance.