Abstract

In the digital age, the clash between data sovereignty and data globalisation has become one of the most pressing legal and policy challenges facing governments, businesses, and individuals. This paper is a research exploration of the escalating legal tensions between data sovereignty and data globalization in the digital era. As an increasing number of countries implement laws to regulate data generated within their jurisdictions, issues surrounding national security, privacy, and public interest have prompted the introduction of stricter regulations, such as the European Union’s General Data Protection Regulation (GDPR), China’s Personal Information Protection Law (PIPL), and India’s Digital Personal Data Protection Act (2023). Concurrently, the contemporary global economy relies significantly on the seamless flow of data across borders, which is essential for cloud computing, digital trade, and online services. This interdependence creates substantial legal challenges, particularly when national laws conflict or when disparate standards are applied in cross-border situations. For instance, the GDPR imposes stringent requirements on data handling that may clash with less rigorous regulations in other jurisdictions, leading to complications for multinational companies operating in diverse legal environments. The paper explores these complexities through doctrinal legal research, comparative analysis, and selected case studies, including Schrems II and the Microsoft Ireland case. Additionally, it examines how trade agreements such as the USMCA and CPTPP attempt to address these tensions. Furthermore, the discussion encompasses broader issues like digital inequality and data colonialism, highlighting how disparities in data governance can exacerbate existing inequalities between nations and within societies. The paper argues that without careful consideration of these factors, the push for data sovereignty could lead to a fragmented digital landscape that hinders innovation and economic growth. The discussion also encompasses broader issues like digital inequality and data colonialism, ultimately offering recommendations for more balanced and collaborative legal frameworks. The aim is to identify strategies that safeguard national interests and individual rights while fostering global digital innovation.

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