What Is Digital Sovereignty? Importance and Challenges

In our increasingly connected world, data is constantly being created, shared, and stored. This has led to important questions about who controls this digital information. As a few global technology companies dominate the digital landscape and international data laws become more complex, understanding digital sovereignty is more important than ever.

What Is Digital Sovereignty?

Digital sovereignty is the ability for a nation, organization, or individual to have independent control over their own digital destiny. This means having authority over the hardware, software, data, and networks that make up their digital environment [1]. The main goal is to protect digital assets and information systems according to a country's or organization's own laws and values, rather than being subject to the rules of another jurisdiction [2].

To make this easier to understand, we can break digital sovereignty down into three core components [3]:

• Data Sovereignty: This is about having control over your data, including where it is stored, who can access it, and how it is used.
• Technology Sovereignty: This involves having control over the technologies and software you rely on, reducing dependency on foreign providers.
• Operational Sovereignty: This refers to having control over your digital operations and processes, ensuring they can run without external interference.

Digital Sovereignty vs. Data Sovereignty

Although the terms "digital sovereignty" and "data sovereignty" are often used together, they mean different things. Think of it this way: data sovereignty is one important piece of the much larger puzzle of digital sovereignty [4].

Data sovereignty is a more specific legal idea. It states that data is subject to the laws and regulations of the country where it is physically located [5]. A perfect example of data sovereignty in action is the General Data Protection Regulation (GDPR) in the European Union. The GDPR sets strict rules for how the personal data of EU residents is collected, processed, and stored, ensuring it is protected under EU law, no matter where the company handling the data is based. As a company dedicated to compliance, Ringover fully adheres to GDPR principles to protect user data.

Why Is Digital Sovereignty Important?

Both governments and businesses are increasingly focused on digital sovereignty for several key reasons. It offers significant benefits for security, independence, and economic growth.

Enhanced Security and Control

Achieving digital sovereignty allows a country or company to better protect its sensitive data from being accessed by foreign governments or unauthorized parties. It ensures that all data handling complies with local data protection laws, giving organizations more control over who can see and use their information.

Reduced Dependency and Greater Resilience

Relying too heavily on a small number of technology providers, especially if they are based in other countries, can be risky. If there is a political dispute or a provider changes its services, it could disrupt business operations. For this reason, many organizations are seeking to diversify their technology partners to ensure their data remains secure and accessible [6]. In fact, a recent study found that 37% of organizations are already using sovereign cloud solutions, and another 44% plan to adopt them soon [7].

Economic Competitiveness

Building a strong local digital industry can create jobs and encourage innovation. When countries and companies develop their own technology, they can compete more effectively on a global scale. This reduces their dependence on foreign technology and allows them to build digital services that are tailored to their own market's needs.

The Challenges of Achieving Digital Sovereignty

While the benefits are clear, the path to achieving digital sovereignty is filled with challenges.

Technological and Economic Hurdles

Building independent digital infrastructure, like cloud services or computer hardware, is incredibly expensive and requires a high level of technical expertise. Established global tech giants have a massive head start, making it difficult for new, smaller companies to enter the market and compete effectively.

Risk of Internet Fragmentation

One major concern is that a strong push for digital sovereignty could lead to a "splinternet." This is a scenario where the global internet breaks apart into separate, disconnected national or regional networks. Each network would have its own rules and standards, making it difficult for information to flow freely across borders. The experience in countries like Brazil highlights the complexities of trying to enforce digital sovereignty without unintentionally creating barriers [8].

Balancing Security with Openness

There is a delicate balance between protecting national interests and maintaining the benefits of a free and open internet. While digital sovereignty can be a tool for security, there is a risk that some governments could use it to justify censorship, control online speech, and increase surveillance over their citizens.

How Can Organizations Pursue Digital Sovereignty?

For businesses looking to increase their control over their digital assets, there are practical steps you can take.

Choose Technology Partners Wisely

When selecting vendors for services like communications or cloud storage, choose partners who are transparent about how they handle your data. It is crucial to work with companies that comply with local regulations and can guarantee that your data is stored in a specific jurisdiction. For example, Ringover is a UCaaS provider that prioritizes security and compliance, with data centers located within the EU to meet stringent data protection standards.

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Implement Strong Data Governance

Create clear internal policies for how your organization's data is classified, who can access it, and how it is processed. Strong data governance ensures that everyone in your company understands their responsibilities and helps prevent accidental data breaches or compliance failures.

Adopt Sovereign-Ready Solutions

Consider using sovereign cloud options, which are designed to comply with local data laws from the ground up. Exploring open-source software can also be a good strategy, as it often provides more transparency and control, reducing your reliance on a single commercial vendor.

Digital sovereignty and business communications

Digital sovereignty is about maintaining control over where your communications data lives, who can access it, and how it's governed–especially call recordings, transcripts, and CRM-linked customer records. In the US, that means looking beyond features and asking practical questions about data residency options, access controls, encryption, retention policies, and vendor contractual commitments.

When choosing a VoIP phone system, US businesses should also factor in the legal environment around data access and disclosure. For example, under US law enforcement frameworks discussed in the US Department of Justice's CLOUD Act resources, providers may be compelled to disclose data they control, even when data is stored outside the US–making vendor selection and architecture (what's stored, where, and under what controls) a real sovereignty consideration.

On the privacy side, if you serve US consumers, particularly California, your vendor relationship can trigger contract and “service provider” restrictions (e.g., limits on retaining/using/disclosing personal information outside contracted purposes). That makes it important to ensure your phone vendor's terms/DPA align with your compliance posture.

How Ringover supports sovereignty-minded teams in the US

Ringover's business phone system is designed for sales and support teams that want cloud flexibility without losing governance. From a sovereignty perspective, key capabilities to look for include:

• Strong security controls (e.g., encryption in transit for signaling/media, secure administration, and access controls).
• Clear data-hosting posture (where data is stored/processed, and what options exist for regional hosting).
• Operational governance (role-based permissions, retention choices, traceability, and account-level configuration).

Ringover positions its platform around secure cloud telephony and describes technical security measures such as encrypted communications (e.g., TLS/SRTP) and operational safeguards, which matter when your call data becomes part of customer records and coaching workflows.

Best-practice sovereignty checklist:

• Prefer vendors that document data location, subprocessors, and security controls in a DPA/trust area.
• Minimize sensitive data stored by default (e.g., record only when needed, set retention windows).
• Validate consent and compliance for texting/automated outreach (e.g., TCPA expectations around consent for texts/robocalls, critical when cloud telephony integrates with sales automation).
• Ensure your privacy contracts support your obligations (especially if you operate in California).

Conclusion

Digital sovereignty is a complex but essential concept in our digital world. It is about more than just data; it is about having control over the entire digital ecosystem to ensure security, independence, and resilience. For governments and organizations, it represents a way to protect sensitive information and foster economic growth.

As digitalization continues to accelerate, developing a clear strategy for digital sovereignty is no longer optional. In fact, it is a necessity for staying competitive and secure. Businesses must carefully choose partners and solutions that respect their data and sovereignty needs.

Explore how a business phone system like Ringover can help your business thrive while maintaining control over your valuable data. Start your free trial today!

Digital Sovereignty FAQ

What is the meaning of digital sovereignty?

Digital sovereignty refers to the ability of a state, organization, or entity to control its digital infrastructure, data, technologies, and online activities in accordance with its own laws, values, and strategic interests. It emphasizes autonomy over digital assets such as data storage, cloud services, software, and networks, rather than relying entirely on foreign providers or jurisdictions.

What are the four types of sovereignty?

Sovereignty is often described through four main dimensions:

• Political sovereignty: the authority of a state to govern itself without external interference.
• Economic sovereignty: control over economic resources, markets, and financial systems.
• Territorial sovereignty: authority over a defined geographic territory and its borders.
• Digital (or technological) sovereignty: control over digital infrastructure, data, and technologies that support modern societies and economies.

What is the difference between digital sovereignty and data sovereignty?

Data sovereignty focuses specifically on where data is stored, processed, and governed, and which national laws apply to it. Digital sovereignty is broader: it encompasses data sovereignty but also includes control over digital infrastructure, cloud platforms, software, standards, and technological dependencies as a whole.

What is a synonym for digital sovereignty?

There is no perfect one-to-one synonym, but related terms include technological sovereignty, digital autonomy, and strategic digital autonomy. These expressions all convey the idea of reducing dependency on external digital technologies and retaining control over critical digital assets.

What is digital sovereignty in international law?

In international law, digital sovereignty refers to the right of states to regulate digital activities within their jurisdiction, including data flows, digital platforms, and online services. It intersects with issues such as cross-border data transfers, cybersecurity, human rights online, and international trade, and reflects ongoing efforts by states to assert authority in the digital domain while respecting international agreements.

Citations

• [1]https://www.ie.edu/uncover-ie/digital-sovereignty-master-in-public-policy
• [2]https://www.trendmicro.com/en_us/what-is/data-sovereignty/digital-sovereignty.html
• [3]https://www.telekom.com/en/company/details/digital-sovereignty-easy-and-simple-1088922
• [4]https://www.apizee.com/digital-sovereignty.php
• [5]https://www.blackberry.com/us/en/glossary/digital-sovereignty-versus-data-sovereignty
• [6]https://www.raconteur.net/technology/what-is-digital-sovereignty
• [7]https://cloud.google.com/transform/digital-sovereignty-101-your-questions-answered
• [8]https://www.isocfoundation.org/2024/10/whats-digital-sovereignty-lessons-from-brazil-to-the-world-implications-risks-and-global-insights

Published on January 7, 2026.