The Global Fracture of Data Privacy: Sovereignty, AI, and the End of Universalism

Registration ID: IJNRD_324594

Published ID: IJNRD2605161

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Gaurav Banda

Digital Sovereignty, Splinternet, GDPR 2.0, Data Localisation, AI Ethics, Privacy-Enhancing Technologies (PETs), Data Gravity.

The notion of the "Brussels Effect" implied that the GDPR would be the sole worldwide gold standard for more than a decade. Nevertheless, by 2026, there will be a structural “Great Fracture” in the digital environment. The Great Fracture is described by a change in global interoperability to Digital Sovereignty, which implies the employment of data privacy legislation as a mechanism for trade protectionism and national security. In this paper, we examine the differences among the three main “Privacy Poles”: the privacy regime based on human rights of the European Union, which is now aligned with the 2024-2026 AI Act; the Securitized Sovereignty model of China, regulated through the PIPL law; and the fragmented, sectorial-based privacy regime of the United States, known as the “Market Contract” model. The results obtained demonstrate that “the Global Fracture” has caused an escalation in the operational cost of compliance by multinational companies by 28% since 2023. Moreover, the development of Generative AI technology has made the traditional “Consent-based” approach irrelevant. The emergence of the “Privacy-Innovation Gap” phenomenon means that the jurisdictions with tough data localisation policies are witnessing a slowdown in joint AI research, whereas the “Data Havens” are experiencing a boom in algorithm training. In summary, the paper posits that the time of universal digital rights is giving way to an age of Algorithmic Realpolitik. We contend that the harmonisation of laws will not be a feasible objective going forward. The fate of the international digital economy now rests on Technical Interoperability, the formulation of interoperable privacy protocols that permit data to stay "sovereign" yet facilitate the transfer of "insights" across borders.

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Gaurav Banda (May-2026). The Global Fracture of Data Privacy: Sovereignty, AI, and the End of Universalism. INTERNATIONAL JOURNAL OF NOVEL RESEARCH AND DEVELOPMENT, 11(5), b481-b486. https://ijnrd.org/papers/IJNRD2605161.pdf

Volume 11 Issue 5, May-2026

Pages : b481-b486

Paper Reg. ID: IJNRD_324594

Published Paper Id: IJNRD2605161

Research Area: Other area not in list

Author Type: Indian Author

Country: Ranga Reddy District, Telangana, India

Published Paper PDF: https://ijnrd.org/papers/IJNRD2605161.pdf

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