The Economic Data Localization & Sovereignty Act#

Data is the new oil. And we are giving it away for free.

In the 21st century, data is the most valuable resource in the world. It is the lifeblood of the digital economy, the raw material that fuels the AI revolution. And yet, we have allowed this precious resource to be controlled by a handful of unaccountable corporations, with little or no regard for our national sovereignty or our economic security.

The Economic Data Localization & Sovereignty Act is a proposed legislative framework designed to reclaim control over our digital destiny. It is a bill that recognizes that in the age of AI, data is not just a commodity; it is a strategic asset.

The Act is not about building a “splinternet” or cutting ourselves off from the rest of the world. It is about ensuring that our most sensitive data is subject to our own laws and regulations, and that it is not being used in ways that are contrary to our national interests.

A Declaration of Digital Independence#

The Economic Data Localization & Sovereignty Act is a comprehensive legislative framework that would put the United States on a path to a more secure and prosperous future.

The Act has four main pillars:

  1. A new data localization requirement for critical sectors: The Act would require that all data related to our critical infrastructure, including our financial system, our energy grid, and our agricultural supply chains, be processed and stored in data centers that are physically located within the United States.
  2. A new set of data sovereignty principles: The Act would establish a new set of data sovereignty principles that would ensure that our data is subject to our own laws and regulations, and that it is not being used in ways that are contrary to our national interests.
  3. A new set of penalties for foreign vendor dependency: The Act would impose strict penalties on companies that become overly dependent on foreign vendors for their data processing and storage needs.
  4. A new national data strategy: The Act would require the federal government to develop and implement a new national data strategy. This strategy would be designed to ensure that we are making the most of our data assets, and that we are using them to build a more prosperous, more equitable, and more secure society.

The Economic Data Localization & Sovereignty Act is not a panacea. It will not solve all of our problems overnight. But it is a critical first step, a down payment on a more secure and prosperous future.

Sources: [1] Imperva, “What is Data Localization?”, https://www.imperva.com/learn/data-security/data-localization/ [2] Kiteworks, “Data Localization: What It Is and Why It Matters”, https://www.kiteworks.com/risk-compliance-glossary/data-localization/ [3] Wikipedia, “Data localization”, https://en.wikipedia.org/wiki/Data_localization