Globalization is slowing, and big tech is recalibrating to navigate the changes in 2026. While superpowers like China and America are favoring isolationism and shifting their trade policies, emerging markets are stepping into the spotlight.
From AI-driven hardware demands to telecom innovation and sustainable data centers, the global technology landscape is being reshaped. Companies that adapt quickly by diversifying supply chains, embracing AI sovereignty, and investing in sustainable infrastructure will be best positioned to thrive in this evolving global ecosystem.
Slowing Globalization | A New Era of Global Trade
The new supply chain trends that emerged in 2025 are likely to continue developing into 2026: protectionism, friendshoring, diversification of import and export markets, and flexible risk management.
Emerging country-first policies are beginning to favor domestic suppliers over foreign importers, particularly in the technology sector, to encourage businesses to relocate or “friendshore.” These trends could slow down globalization through 2026 by making imports to certain countries more complex and reducing interdependence among nations.
Protectionism among superpowers may enable middle-powers to start positioning themselves as new economic centers, which could include:
These smaller players could begin forming new agreements with one another and become more desirable trade partners. The US and China are likely to continue negotiating trade agreements with smaller countries like these to continue attempting to influence trade dynamics.
Changing trade dynamics means changing trade policies, resulting in a gradual revision of trade compliance. Tech importers and buyers need reliable, adaptable, and diversified supply chains to withstand the evolving trade landscape, as well as a trusted partner in compliance to ensure their shipments keep moving despite the new era of trade.
Geopatriation | A Move to Sovereign AI
In 2026, we expect to see increased efforts at geopatriation in AI and cloud infrastructure.
Geopolitical tensions and regulatory mandates are significantly reshaping the sector, driving organizations to reassess foreign cloud dependencies. This means that global hyperscale cloud workloads are potentially shifting towards sovereign environments, rather than relying on the US or China for their AI stacks.
Europe is leading the way, as the Nordics, Germany, and Switzerland top Accenture’s list of sovereign AI maturity. The High-Tech industry ranks far behind the top contender, aerospace, in industry sovereign AI maturity, meaning it has significant catching up to do in the near future.
Europe’s progress can be linked to its policies, such as the EU Cloud Code of Conduct (EU Cloud CoC) and the Data Governance Act, which mandate data residency, protection, and compliance. Major cloud providers are expanding sovereign offerings across Europe to meet these requirements.
South Korea is also rapidly adopting sovereign AI. It already has an advanced semiconductor sector, and by developing indigenous AI to combine with its domestic chip manufacturing capabilities, South Korea could create a powerful AI stack to offer as an alternative to China or America.
The AI Boom and Hardware Demand
The ongoing AI boom has had a ripple effect on demand for hardware and infrastructure, with supply chain vulnerabilities remaining unresolved. Deloitte believes that $30 billion could be spent on new chipmaking technologies for GenAI and HPC in 2026, including “… high-bandwidth memory co-packaging tools, 3D stacking, plasma etching, and GAA transistors.”
Specialized and well-established semiconductor manufacturers and supply chains remain vulnerable to ongoing geopolitical tensions and uncontrollable factors, such as Taiwan’s drought in the early 2020s. Only time will tell if emerging exporters like South Korea can match these chip capabilities and ease supply chain strain.
Beyond Europe and South Korea, countries in Asia and South America are adopting similar strategies, prioritizing local cloud and data sovereignty to reduce their dependency on global hyperscale providers.
With the IndiaAI Mission, India is propelling the development of its AI stack with innovation, financing, and a scalable AI ecosystem. Meanwhile, Brazil has recently invested $23 billion in the Brazilian Artificial Intelligence Plan over four years to build AI sovereignty and introduced sovereign generative AI, utilizing local data centers and green energy.
Saudi Arabia is similarly investing billions in sovereign data centers, HPC infrastructure, and AI talent, positioning itself as a Middle Eastern hub for AI and cloud innovation.
Green Data Centers | Competitiveness in Sustainability
Let’s take a look at arguably the most power-intensive tech industry today: data centers. Global power demand from data centers could increase 50% by 2027 compared to 2023. With an impact like this, sustainability is a crucial consideration for the booming sector.
As sustainability gains traction worldwide, tech companies will need to prioritize making sustainable choices, such as incorporating circular materials and implementing low-carbon processes. Sweden, Denmark, and Iceland have led the way in data center sustainability, with data centers across the Nordics often utilizing 100% wind and geothermal energy sources.
A new energy source has come to light: solar-powered data centers are emerging in North America, India, Italy, and Argentina – and this trend may continue in 2026. These locations have more space than the Nordic islands of Iceland and Greenland – could free cooling and extreme climates become a thing of the past for data centers?
Goldman Sachs Research found that the greatest data center power is currently found in APAC and North America, with Greater Beijing (8%) at the lead, followed by Northern Virginia (7%), then Greater Shanghai (6%). The US-China AI war may begin to encompass a race towards sustainability as these regions search for solutions to meet their growing energy requirements and maintain their position in the push for AI dominance.
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A New Path for Telecom
Telecoms are reinventing themselves. Low-Earth-Orbit (LEO) satellites are expected to generate roughly $15 billion annually by 2026 while reshaping global connectivity. Direct-to-Device (D2D) services could see up to $8 billion in investment, supporting basic service, with the long-term goal of achieving broader connectivity beyond current networks.
Meanwhile, telecom operators are increasingly selling perks and lifestyle benefits, rather than just speed. Deloitte projects that at least a third of consumers in developed markets will prioritize perks over peak network performance by the end of 2026.
In 2026, emerging markets are poised to make a significant contribution to telecom innovation:
- India is rapidly expanding its 5G footprint, extending high-speed connectivity across the country.
South Africa is modernizing its networks through ongoing 5G and fibre upgrades to boost nationwide access. - Across Africa, more markets are activating commercial 5G services as adoption accelerates across the continent.
- In the Middle East, countries such as the UAE and Saudi Arabia are heavily investing in next-generation networks and digital transformation, positioning the region for strong connectivity growth.
Big Tech in 2026
Big tech is stepping into uncharted waters in 2026, where geopolitics, sustainability, and rapid innovation are intersecting. As AI, telecom, and infrastructure continue to evolve, companies that anticipate regulatory shifts will lead the way in shaping the next era of technology.
Rapidly evolving regulations can be challenging to keep up with, and failing to stay compliant throughout these changes can significantly impact your bottom line. Partnering with TecEx means you can focus on your tech innovations while we ensure your shipments are compliant and optimized for efficiency.
