Data sovereignty is a strategic imperative
Algorithms, fuelled by vast datasets, shape nearly every aspect of our daily lives. They influence what we buy, how we commute, what food we order, what information we see on social media, and how we access services. This promotes convenience and efficiency, but there is also a darker side. The algorithms operate with little transparency and can become instruments of strategic surveillance and behavioural modification. For example, the algorithmic curation of information on social media platforms can influence public opinion and political outcomes. Cambridge Analytica claimed to have influenced the 2016 US election by harvesting data from millions of Facebook users to build detailed psychographic profiles. Using this information, they deployed microtargeted political ads tailored to voters' personalities, fears, and beliefs, often exploiting polarising issues like immigration, Islamophobia, and racial biases.
Artificial Intelligence (AI) has significantly amplified the risks associated with data. Unlike earlier uses of data that supported routine processes, AI uses data to forecast outcomes and influence real-time decision-making. This gives unprecedented power to those who control the data and the models trained on it. AI systems could also quickly spread bias and disinformation in ways that are difficult to detect or regulate.
There is also the risk of data colonisation. This term refers to scenarios where countries provide citizen behaviour, biometric records, health data and cultural patterns to foreign companies. These companies train AI systems on this data but do not share the value that is generated, mirroring colonial-era raw material extraction. Apart from creating technological dependency, there is also a fear that national decision-making can be subtly shaped by algorithms optimised for foreign interests.
Sovereign control over data has thus become crucial for national security. Countries like the US and China have embedded data sovereignty into their strategic doctrines. The US asserts data sovereignty through a mix of legislation and technological dominance. Laws such as the CLOUD Act and FISA 702 allow US authorities to access data held by American companies, even when stored overseas. Through dominance in cloud services (Amazon, Microsoft, Google), foundational AI models, and data infrastructure, the US retains strategic control over much of the world's data flows. Export controls on semiconductors and AI chips further reflect America's intent to maintain its global tech leadership.
China pursues a more State-centric and restrictive model of digital sovereignty. Through laws like the cybersecurity law (2017), data security law (2021), and personal information protection law (2021), China mandates that critical data generated within its borders be stored locally and imposes strict controls on data exports. It has also cultivated national technology champions such as Baidu, Alibaba, Tencent, and Xiaomi, while maintaining tight state oversight of digital platforms. China's Great Firewall embodies the country's concept of cyber sovereignty, which holds that each nation has the absolute right to regulate and control its own digital space.
India generates about 20% of global data but holds only a 3% share of global data centre capacity. It therefore remains deeply reliant on foreign-controlled digital infrastructure. From Aadhaar and CoWIN to DigiYatra and UPI, India has made impressive strides in building public digital platforms. Yet, most Indian entities and startups still store and process data through foreign cloud providers. Even if servers are located within India, jurisdictional control often lies with the host nations of these corporations. This legal loophole has significant national security implications.
The dangers are not limited to infrastructure disruption alone. Foreign access to sensitive data can enable sophisticated forms of cognitive warfare, where targeted misinformation, psychological operations, and algorithmic manipulation could be used to fracture social cohesion, manipulate public opinion, and erode trust in institutions. In a country as socially diverse as India, influence campaigns can be deeply destabilising.
The Digital Personal Data Protection (DPDP) Act was enacted in 2023, but its substantive provisions have not yet come into force. The act allows transfer of personal data to any country or territory outside India, except where the government restricts such transfers explicitly by official notification. While sectors like banking, telecom, and insurance already mandate data localisation, others, such as healthcare, education, and e-commerce, lag in compliance and clarity.
India must, therefore, move beyond viewing data as a mere economic asset and treat it as a pillar of national resilience and strategic autonomy. Policies must ensure not just localisation, but jurisdictional clarity and public trust. Cloud systems hosting critical infrastructure must be subject to Indian law, not foreign statutes.
AI models trained on Indian data must be accessible to Indian institutions. Without a robust domestic AI infrastructure, India risks becoming a digital colony, exporting raw data while increasing its dependency on foreign solutions for cutting-edge solutions.
Finally, cognitive warfare must enter the mainstream of national security thinking. The manipulation of narratives, emotions, and opinions through algorithmically targeted content is no longer in the realm of a dystopian future, but rather a present menace. India must craft an information warfare doctrine to deal with this very real threat.
In today's world, data is the new battlefield, and its control will shape national futures. For India, asserting data sovereignty is not just a technological challenge but a strategic imperative.
Lieutenant General (retired) Deependra Singh Hooda is the co-founder of the Council for Strategic and Defence Research and a senior fellow at the Delhi Policy Group. The views expressed are personal
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