The Case for Digital Sovereignty in the Caribbean: A CARICOM Strategic Imperative

Introduction

The global geopolitical landscape is becoming increasingly volatile, with economic and technological powerhouses leveraging digital infrastructure as a strategic tool in international relations. The United States, the European Union, China, and Russia have all wielded digital influence through policies, sanctions, and trade restrictions. The Caribbean, heavily dependent on North American service providers, faces significant risks from these power struggles. Recently we have seen a serious example of this with sanctions being placed on individuals employed in the International Criminal Court. This situation could have been significantly worse for the ICC if the sanctions were placed on the organization itself. According to an Irish Times article published on 7th February 2025

“Targeting the institution could, for example, freeze the court’s banking or payments systems, making it impossible to pay staff or suppliers. There were also fears that they might hit its IT systems, especially given that the court recently formed a working partnership with Microsoft to update its networks – and that all of its huge quantities of forensic evidence are now stored in the cloud.”

Digital sovereignty—or the lack thereof—must be a critical concern for nations seeking to control their digital infrastructure, data, and technological future. For the Caribbean Community (CARICOM), the current geopolitical climate highlights the urgent need to establish digital sovereignty as a strategic priority. Reliance on foreign-controlled digital infrastructure at the platform and application levels exposes the region to vulnerabilities, including economic disruptions, national security risks, and external political influence.

As technology becomes increasingly integral to all aspects of life, Caribbean nations must recognize digital sovereignty as a cornerstone of their future resilience, competitiveness, and independence. Ultimately, this is not just about digital sovereignty — it is about safeguarding national sovereignty itself.

The Geopolitical Climate and the Digital Divide

We are already seeing the impact that political sanctions imposed by digitally advanced countries have on critical digital services, affecting governments, businesses, and citizens. CARICOM countries, despite maintaining diplomatic neutrality in many global conflicts, are not immune to similar vulnerabilities.

The most recent overt demonstration of such power has been the USA’s decision on who can access high-end GPU chips needed to develop Artificial Intelligence (AI) solutions, where according to a Reuters article titled “US tightens its grip on AI chip flows across the globe”

“The regulation divides the world into three tiers. About 18 countries, including Japan, Britain, South Korea and the Netherlands, will essentially be exempt from the rules. Some 120 other countries, including Singapore, Israel, Saudi Arabia and the United Arab Emirates, will face country caps. And arms-embargoed countries like Russia, China and Iran will be barred from receiving the technology altogether. In addition, U.S.-headquartered providers likely to receive global authorizations such as Amazon Web Services and Microsoft will be allowed to deploy only 50% of their total AI computing power outside the United States, no more than 25% outside of the Tier 1 countries and no more than 7% in a single non-Tier 1 country.”

Case Studies of Digital Sanctions

Several instances illustrate how global actors have leveraged digital control:

• Venezuela and SWIFT Ban – Venezuela was cut off from the Society for Worldwide Interbank Financial Telecommunication (SWIFT), crippling its ability to conduct international financial transactions. This highlights the need for alternative digital financial infrastructures.
• Huawei and U.S. Sanctions – The U.S. imposed sanctions on the Chinese tech giant Huawei, restricting its ability to access American technology, including operating systems like Android. Several developing nations that relied on Huawei's cost-effective solutions for telecommunications faced uncertainty.
• Russia and Western Tech Sanctions – Following geopolitical tensions, Russia faced severe digital sanctions from Western companies, including Google, Apple, and Microsoft. In 2022, Microsoft suspended all new sales and services in Russia, significantly impacting businesses reliant on Windows, Office 365, and Azure cloud solutions. Google also restricted access to its advertising services, Play Store purchases, and cloud offerings, affecting numerous Russian enterprises and app developers.

These cases emphasize that dependence on foreign-controlled digital infrastructure poses a national security risk for Caribbean nations.

Why CARICOM Must Act Now

The Caribbean must take proactive steps to mitigate similar risks and enhance its digital sovereignty. The following factors make digital sovereignty a critical agenda item for CARICOM:

1. Data Protection and Privacy – Caribbean nations must have control over their citizens’ data. The absence of regional data centers means that most sensitive data is stored on servers controlled by foreign entities, in other jurisdictions, exposing them to external access and potential exploitation.
2. Financial Security and Independence – The Caribbean heavily relies on international banking systems and fintech services. If regional entities face sanctions or exclusion, the economic fallout could be severe. Developing regional digital financial systems would provide resilience against external pressures.
3. Telecommunications and Infrastructure Autonomy – Currently, major cloud services and internet infrastructure are controlled by non-Caribbean companies, primarily USA-based entities, subject to USA legislation. A regional digital infrastructure initiative, including localized cloud services and a CARICOM-led telecommunications backbone, would reduce vulnerability.
4. Cybersecurity and National Defence – With cyber threats escalating, relying on foreign cybersecurity frameworks poses a strategic risk. Developing regional cybersecurity protocols and incident response mechanisms would enhance national security.

Steps Towards Digital Sovereignty

CARICOM must prioritize the following actions to establish digital independence:

• Develop Regional Data Centres – A CARICOM-led data storage initiative would allow the region to store sensitive government, business, and citizen data within its jurisdiction.
• Encourage Open-Source Adoption – Reducing dependence on proprietary foreign software (e.g., Microsoft, Google, and Apple) by promoting open-source alternatives will ensure continued access to digital tools.
• Establish a CARICOM Digital Currency – Expanding regional digital financial systems, such as the Eastern Caribbean Central Bank’s DCash, would reduce reliance on external banking networks.
• Invest in Cybersecurity Infrastructure – Regional cooperation on cybersecurity frameworks, information sharing, and training programs will help protect Caribbean nations from cyber threats and external digital coercion.
• Develop Local Digital Platforms – Encouraging homegrown digital entrepreneurship and the development of Caribbean-owned platforms will reduce reliance on foreign tech giants.
• Establish National and Regional Internet Exchange Points (IXPs) – Developing and maintaining IXPs within the Caribbean will enhance regional internet resilience, reduce latency, and improve local data traffic efficiency. By keeping intra-regional traffic local, CARICOM nations can reduce dependence on external networks, ensuring the continuity of digital services even in the face of geopolitical disruptions.

Conclusion

Digital sovereignty is no longer a luxury but a necessity for Caribbean nations. The geopolitical climate has demonstrated that over-reliance on foreign-controlled digital infrastructure presents significant risks. CARICOM must spearhead discussions on digital independence, invest in regional digital infrastructure, and implement policies that safeguard its technological future. By doing so, the Caribbean can ensure long-term economic stability, national security, and true digital autonomy in an increasingly unpredictable world.