It’s a long way from the US state of Virginia to the Swiss mountain town of Davos, but they are bound together this week by something that is shaping humanity’s future: the rise of AI and advanced digital technology.
Last week, The National paid an exclusive visit to an enormous data centre in northern Virginia run by global digital infrastructure company Equinix. There, rows and rows of servers thrummed loudly, neatly organised and secured behind continuously monitored, locked cages. Streaming, AI services, cloud computing and millions of everyday online interactions flow through this centre and thousands more like it in the US and elsewhere.
Such data centres are physical manifestations of a digital boom that is shaping the present and the future. According to the World Bank, the worldwide digital economy accounts for about 15 per cent of global GDP. This equated to about $16 trillion in 2024 alone. It is no coincidence, therefore, that the future of AI and advanced tech is being roundly debated at the World Economic Forum’s Annual Meeting this week.
A key concern is what WEF has called “fragmentation”. According to the Forum’s Global Cybersecurity Outlook 2026, political tensions are “contributing to a growing fragmentation of global technology ecosystems, as countries diversify their partnerships and supply chains”. And yet, we are seeing such diversification play an important role as new global alignments take shape.
One such alignment is the US-led Pax Silica strategic initiative. Leading economies such as Japan, South Korea, Singapore and the UK were joined as signatories last week by the UAE and Qatar. India is reported to be joining as a signatory next month. The US says Pax Silica aims to unite nations that are home to the world’s most advanced technology companies and help to “unleash the economic potential of the new AI age”.
Most modern economies are benefitting from advanced technology, but vulnerabilities exist, such as supplies of advanced chips and AI hardware. Advocates for Pax Silica say it diversifies suppliers and reduces the chance that a single conflict or trade embargo collapses global tech infrastructure. Others say such partnerships crystallise geopolitical, technological and economic rivalries. However, the reality is that global tech has always had an element of rivalry to it, such as that between Chinese and US interests.
Pax Silica and agreements like it bring a measure of organisation and predictability to this reality, ensuring more co-ordination among members regarding supply chains and national security concerns. Nevertheless, it is early days for this initiative and there are concerns that it could lead to opposing tech blocs motivated by a zero-sum approach that impedes global co-operation.
This is where Davos can play an important role. Having high-level engagement between tech chiefs, business figures and political leaders helps to foster alignment and mainstream ideas and policies that could constructively shape humanity’s AI journey. It is not possible for organisations like the WEF to solve such complex issues, but providing a forum for dialogue that crosses traditional boundaries is vital for the success of stakeholders and their constituents.
