How the emerging multipolar digital order is redefining technology, data and artificial intelligence

The global technology landscape is entering a new phase. Artificial intelligence, cloud computing, digital public infrastructure, data and advanced semiconductor technologies are no longer viewed only as tools for economic growth. They are increasingly becoming strategic assets closely connected with national security, economic competitiveness and geopolitical influence.

This shift has brought concepts such as technology sovereignty, data localization, digital sovereignty and AI governance to the centre of international diplomacy.

Among the global groupings shaping this conversation, BRICS has emerged as an important platform for developing countries and the Global South to discuss how digital technologies should be governed in a rapidly changing world.

BRICS discussions increasingly emphasize national sovereignty over data, trusted cross-border data flows, equitable access to AI, open innovation, digital infrastructure and more inclusive global technology governance. The 2025 BRICS Rio de Janeiro discussions, for example, called for a principle-based and interoperable approach to data governance that respects national data sovereignty while enabling safe cross-border data flows.

For enterprises, this evolution has a direct implication: the future of digital transformation will not be determined by technology alone, but also by where data resides, who controls infrastructure, how AI is governed and which regulatory frameworks apply.

Technology sovereignty refers to a country's or organization's ability to maintain meaningful control over critical technologies, infrastructure, data and digital capabilities.

It does not necessarily mean becoming completely independent from global technology providers. Instead, it is increasingly about developing sufficient capabilities and strategic alternatives to reduce excessive dependency and maintain control over critical digital assets.

Technology sovereignty can include:

• Control over critical digital infrastructure
• Secure and resilient cloud environments
• Domestic or trusted AI capabilities
• Data governance and protection
• Cybersecurity and digital identity
• Semiconductor and hardware ecosystems
• Open-source software and technology standards
• Skilled technology talent
• Ability to make independent technology and regulatory decisions

This distinction is important because complete technological self-sufficiency is difficult in a globally interconnected economy. A more practical approach is managed technological interdependence, where countries and enterprises maintain strategic control while continuing to collaborate internationally.

Originally established around economic cooperation, BRICS has increasingly expanded its agenda into technology, digital transformation, artificial intelligence and data governance.

The grouping's declarations have emphasized the importance of developing a more inclusive global digital ecosystem and ensuring that developing countries can participate in and benefit from emerging technologies.

The 2024 Kazan Declaration highlighted the need for fair, inclusive and equitable data governance and called for international cooperation on AI governance, capacity building and digital infrastructure.

This approach reflects a broader concern among emerging economies: AI and digital transformation should not create a new form of technological inequality.

If advanced AI models, computing infrastructure, data and digital platforms remain concentrated among a small number of countries and companies, developing economies could become primarily consumers rather than creators of next-generation technology.

BRICS cooperation therefore has the potential to influence how the Global South approaches AI infrastructure, data governance, digital public infrastructure and technology partnerships.

One of the most important issues in this debate is data localization.

Data localization refers broadly to requirements or policies that require certain categories of data to be stored, processed or retained within a particular country's jurisdiction.

Governments may consider localization for several reasons:

• National security
• Protection of personal information
• Regulatory compliance
• Critical infrastructure protection
• Law-enforcement access
• Economic development
• Strategic control over sensitive datasets

However, strict localization can also create challenges for multinational businesses.

Global organizations increasingly operate across multiple countries and rely on distributed cloud infrastructure, analytics platforms and AI services. Requiring data to remain within national borders can increase infrastructure complexity, operational costs and compliance requirements.

This creates a difficult policy balance:

• Data sovereignty vs. cross-border innovation
• Privacy vs. accessibility
• National security vs. global interoperability
• Localization vs. cloud scalability

BRICS discussions increasingly point toward a middle path: recognizing national sovereignty over data while enabling secure, trusted and mutually agreed cross-border data flows. The BRICS data-governance framework specifically highlights sovereign data governance, interoperability, transparency and safe cross-border transmission.

India provides an important example of how an emerging economy is developing its own digital governance framework.

The Digital Personal Data Protection Act, 2023 establishes a legal framework for processing digital personal data while recognizing individuals' rights regarding their personal data and the lawful processing requirements of organizations.

For businesses operating in India, this means data strategy can no longer be treated simply as an IT infrastructure decision.

Organizations need to consider:

• What data is being collected?
• Where is it stored?
• Who can access it?
• How is it processed?
• Which third parties have access?
• Where does data move across borders?
• How is sensitive data protected?
• How is data used to train or operate AI systems?

These questions become even more important as enterprises integrate generative AI, AI agents, analytics and automation into their operations.

AI governance is becoming one of the most significant areas of multilateral diplomacy.

The challenge is to enable innovation while addressing risks associated with:

• Privacy
• Bias and discrimination
• AI-generated misinformation
• Cybersecurity
• Intellectual property
• Lack of transparency
• Unsafe autonomous systems
• Misuse of AI
• Algorithmic accountability

BRICS has advocated a human-centred, development-oriented and inclusive approach to AI governance. Its recent AI-related statements have also emphasized equitable access to AI technologies, international cooperation, open-source development and stronger AI capacity in developing economies.

This is significant because AI governance cannot be effectively addressed by individual countries alone.

AI models, cloud platforms, datasets and digital services operate across borders. Consequently, regulatory approaches also need a degree of international coordination.

A major consequence of the technology-sovereignty debate is the emergence of Sovereign AI.

Sovereign AI refers to the ability of a country, organization or ecosystem to maintain meaningful control over critical elements of its AI capabilities, including:

Data → Compute → Models → Infrastructure → Deployment → Governance

Sovereign AI does not necessarily mean developing every component independently.

Instead, it can involve combining:

• Local or trusted data environments
• Sovereign or controlled cloud infrastructure
• Open and interoperable AI models
• Secure compute environments
• Strong identity and access controls
• Local AI talent
• Transparent governance frameworks
• Strategic partnerships

This model can help organizations maintain control over sensitive workloads while still benefiting from global technology ecosystems.

For enterprises operating in regulated industries such as government, healthcare, financial services and education, this distinction is becoming particularly important.

Cloud computing was once primarily considered an IT modernization strategy.

Today, cloud infrastructure is increasingly connected with data sovereignty, cybersecurity, AI readiness and national digital resilience.

AI workloads require substantial computing capacity, high-performance storage, networking and scalable infrastructure. At the same time, organizations need to determine where sensitive information is processed and how access is controlled.

This makes cloud architecture an important component of digital sovereignty.

Modern enterprises therefore need to evaluate:

1. Data Residency: Where is organizational and customer data physically stored?
2. Data Sovereignty:Which country's laws and regulatory authorities govern that data?
3. Operational Control: Who controls infrastructure, encryption keys, identities and administrative access?
4. Portability: Can workloads and data move between environments when business or regulatory requirements change?
5. Resilience: Can the organization continue operating if a particular provider, region or technology becomes unavailable?
6. AI Readiness: Can the infrastructure support modern AI, machine learning and agentic workloads securely?

A resilient architecture should therefore balance sovereignty, scalability, security, interoperability and business continuity.

Open-source technology can also play an important role in technology sovereignty.

Open ecosystems can reduce dependence on individual vendors, encourage local innovation and allow organizations to inspect, customize and contribute to technology platforms.

BRICS' AI discussions have specifically encouraged open-source development and international scientific and technological cooperation as mechanisms for strengthening AI research, data protection, data sovereignty and deployment capabilities.

For enterprises, open technologies can provide greater flexibility across:

• Cloud platforms
• Containers
• Kubernetes
• Databases
• AI frameworks
• Machine learning infrastructure
• Security tools
• Integration platforms

However, open source alone does not create sovereignty. Organizations still need strong governance, security, skills, operational capabilities and sustainable technology strategies.

The geopolitical evolution around technology creates several practical priorities for businesses:

For organizations navigating this new digital environment, technology modernization needs to go beyond simply moving workloads to the cloud.

Insphere can support enterprises in building secure, scalable and AI-ready digital foundations across cloud modernization, application modernization, data platforms and AI transformation.

Its approach can help organizations align technology architecture with evolving requirements around security, governance, scalability, data protection and AI adoption.

Key areas include:

• Cloud Migration & Modernization– Modernizing legacy workloads and applications for scalable cloud environments.
• Application Modernization– Transforming legacy applications into modern, cloud-native architectures.
• AI & Cloud Transformation– Building infrastructure capable of supporting enterprise AI and generative AI workloads.
• Data & Digital Platforms– Creating secure and scalable platforms for managing enterprise data.
• Managed Platform Operations– Supporting reliable, secure and optimized cloud and application environments.
• Security & Compliance– Integrating governance, identity, monitoring and security into modern technology environments.

For enterprises operating across multiple regulatory environments, the objective is not simply to choose between centralized and localized infrastructure.

It is to build an architecture that provides control where control matters, flexibility where flexibility matters and interoperability where global collaboration matters.

The future digital economy is unlikely to be completely centralized or completely fragmented.

Instead, it will increasingly operate through a network of national digital ecosystems, regional partnerships, international standards, trusted cloud environments and cross-border technology collaborations.

BRICS' evolving position on data governance and AI illustrates this broader shift. Its approach emphasizes national sovereignty while simultaneously calling for interoperability, international cooperation and more equitable access to emerging technologies. For governments, this means building stronger national digital capabilities.

For enterprises, it means creating technology architectures that can operate across changing regulatory and geopolitical environments.

And for technology providers, it means delivering solutions that combine innovation with security, sovereignty, interoperability and trust.

The next phase of digital transformation will be shaped not only by faster processors, larger AI models or more powerful cloud platforms, but also by who controls technology, where data moves, how AI is governed and how nations collaborate.

BRICS is becoming an important forum in this conversation by promoting a more inclusive approach to AI, data governance and digital transformation.

For enterprises, the message is clear: Digital transformation must evolve into sovereign, secure and responsible digital transformation.

Organizations that begin preparing today by modernizing cloud infrastructure, strengthening data governance, adopting flexible architectures and establishing responsible AI practices will be better positioned to navigate the emerging multipolar technology landscape.

The future of technology will be global. But control, trust and governance will increasingly be local, strategic and shared.