Tech Power: 3.5 Billion Offline in 2026

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Key Takeaways

  • Over 3.5 billion people, nearly half the global population, still lack reliable internet access, perpetuating a significant digital divide.
  • Data sovereignty laws are fragmenting the global digital economy, with 70% of countries now having some form of data localization requirement.
  • The market capitalization of the top five global tech companies now exceeds the GDP of most G7 nations, indicating unprecedented economic concentration.
  • AI development is increasingly centralized, with 80% of modern AI research and deployment originating from just three regions: North America, East Asia, and Western Europe.

In 2026, a staggering 3.5 billion individuals, almost half the world’s population, remain offline, highlighting a persistent and widening digital divide that shapes global tech power dynamics. This isn’t just about access. It’s about the fundamental structures of influence, control, and opportunity that emerging technologies are solidifying.

Data Point 1: 3.5 Billion People Remain Offline

The latest figures from the International Telecommunication Union (ITU) reveal that despite advancements in connectivity, 3.5 billion people globally still do not have reliable internet access. This isn’t merely an inconvenience. It represents a deep exclusion from economic, educational, and social opportunities. Consider the impact on remote work, telemedicine, or even basic civic engagement in regions where connectivity is a luxury, not a given. The absence of digital infrastructure in large parts of Sub-Saharan Africa, South Asia, and remote areas of Latin America creates a self-reinforcing cycle of underdevelopment. Without access to digital literacy programs or affordable devices, these populations are not just left behind, they are actively disadvantaged in an increasingly connected world. We often discuss the promise of emerging tech, but for billions, that promise remains an abstract concept, confined to headlines and distant conversations. I’ve seen firsthand how projects aimed at bridging this gap often falter due to lack of sustainable funding or political will, leaving communities in the same disconnected state.

Data Point 2: 70% of Countries Enforce Data Localization

A recent report by the United Nations Conference on Trade and Development (UNCTAD) indicates that approximately 70% of countries have implemented some form of data localization requirement, mandating that data generated within their borders be stored and processed domestically. This trend, often framed as a matter of national security or data sovereignty, fundamentally reshapes the global digital economy. For multinational tech companies, it means working through a patchwork of regulations, increasing operational costs, and potentially fragmenting global services. For users, it can mean slower service, reduced access to global platforms, and a greater risk of government surveillance. The stated goal is often to protect citizen data, but the practical outcome is frequently a balkanization of the internet, making cross-border data flows more complex and less efficient. This creates a powerful use point for nations to control information and influence digital commerce within their jurisdictions, shifting power away from global platforms and towards national governments. It also poses significant challenges for startups and smaller companies that lack the resources to comply with diverse regulatory frameworks across multiple countries.

Data Point 3: Top 5 Tech Companies Exceed Most G7 GDPs

The combined market capitalization of the five largest global tech companies now surpasses the Gross Domestic Product (GDP) of several G7 nations. For example, as of Q1 2026, the aggregate valuation of these tech giants exceeds the GDP of Canada or Italy, according to data compiled from financial market reports. This concentration of economic power is unprecedented. These companies not only control vast financial resources but also exert immense influence over infrastructure, information flow, and innovation pipelines. Their ability to acquire emerging competitors, dictate industry standards, and shape consumer behavior gives them a unique position in the global economy. This isn’t simply about being big. It’s about the systemic impact of their decisions. When a handful of entities hold such sway, it raises serious questions about market competition, regulatory oversight, and the potential for monopolistic practices. Do we truly have a competitive field when such a disproportionate amount of capital and talent is concentrated in so few hands?

Data Point 4: 80% of Modern AI from Three Regions

Analysis of recent academic publications, venture capital funding, and patent filings in artificial intelligence reveals that approximately 80% of bold AI research and deployment originates from just three major regions: North America, East Asia (primarily China), and Western Europe. This geographic concentration of AI development means that the ethical frameworks, cultural biases, and strategic priorities of these regions disproportionately shape the future of artificial intelligence. While AI holds immense promise, its development is not globally equitable. Nations outside these hubs risk becoming mere consumers of AI technologies, rather than active participants in their creation and governance. This creates a significant power imbalance, as the standards, values, and even the very problems AI is designed to solve are largely defined by a select few. This concentration could exacerbate the digital divide, creating an “AI divide” where only a few benefit from the far-reaching potential of these technologies, leaving others to contend with their externalities.

Challenging the Narrative: “Tech Will Naturally Democratize”

A common belief persists that technology, by its very nature, will eventually democratize access and power. The argument often goes that as devices become cheaper and connectivity more widespread, everyone will eventually catch up. I strongly disagree with this conventional wisdom. While access to basic technology might improve, the gap in meaningful participation and control is actually widening. The sheer complexity of modern tech, the rapid pace of innovation, and the immense capital required for modern development mean that the playing field is far from level. Simply providing a smartphone doesn’t magically help someone to build the next bold AI model or influence global policy. The power dynamics are shifting towards those who control the platforms, the data, and the algorithms, not merely those who consume the end products. We need to move beyond the simplistic notion that more tech equals more democracy. It requires intentional policy, investment, and a fundamental rethinking of how we govern these powerful new tools.

The unseen power dynamics of emerging tech demand our immediate attention. Policymakers, industry leaders, and citizens must collaboratively develop strategies that ensure technology serves humanity broadly, not just a privileged few. This means investing in truly universal access, fostering diverse innovation ecosystems, and establishing strong governance frameworks that prioritize equity over unchecked technological advancement.

What is the “digital divide” in 2026?

In 2026, the “digital divide” refers not just to a lack of internet access, but also to significant disparities in digital literacy, device affordability, and the ability to meaningfully participate in the digital economy, impacting over 3.5 billion people globally.

How do data localization laws affect global tech companies?

Data localization laws, enforced by approximately 70% of countries, require tech companies to store and process data within national borders, increasing operational costs, fragmenting global services, and necessitating complex compliance strategies across different jurisdictions.

Why is the concentration of AI development in specific regions a concern?

The concentration of 80% of modern AI development in North America, East Asia, and Western Europe is a concern because it means the ethical frameworks, cultural biases, and strategic priorities of these regions disproportionately shape AI’s future, potentially creating an “AI divide” and exacerbating global inequalities.

What is meant by “tech power dynamics”?

Tech power dynamics describe the shifting influence, control, and use exerted by nations, corporations, and individuals through their command over technological infrastructure, data, algorithms, and innovation pipelines.

What is the main challenge to the idea that technology naturally democratizes?

The main challenge is that while basic tech access may grow, the widening gap in meaningful participation, control over platforms, and the immense capital required for advanced development means that true democratization is not an automatic outcome. It requires intentional policy and governance.

Christine Torres

Senior Geopolitical Analyst Ph.D., International Relations, London School of Economics

Christine Torres is a Senior Geopolitical Analyst at the Horizon Global Institute, bringing 18 years of experience in international relations and policy analysis. His work primarily focuses on emerging power dynamics in Southeast Asia and their implications for global trade and security. Torres is widely recognized for his groundbreaking report, "The Shifting Sands: Maritime Hegemony in the South China Sea," which accurately predicted several key geopolitical shifts. He regularly advises governmental and non-governmental organizations on complex diplomatic challenges