UN Backs Data Cooperatives to Challenge Tech Giants' Power
The global economy's reliance on data has exposed a significant imbalance: while tech giants profit from user data, individuals have little control or benefit. Existing frameworks struggle to address data governance issues, hindering the growth of alternative models like data cooperatives. The UN has recognized this issue, declaring 2025 the International Year of Cooperatives, coinciding with AI's next phase, which demands higher-quality data.
Data cooperatives, which allow members to vote on governance rules and share economic benefits, have shown success in sectors like agriculture and healthcare. However, they remain niche without policy intervention. Examples include Indian agricultural cooperatives and Estonia's X-Road system, which prioritizes citizen control and data sovereignty. Yet, existing cooperative law is not designed for digital assets, posing legal constraints.
An ITU-UNDP official UNGA affiliated session brought together organizations and policymakers to discuss scaling data cooperatives and citizen-centered digital infrastructure. Two models have emerged to challenge data extractivism at scale: data cooperatives and government-led digital infrastructure with a citizen data agency. However, most governments lack the technical capacity to build such systems independently. Successful data cooperative enterprises have been established in Germany, particularly in the wind energy sector, but policy updates are needed to support these alternatives and enable solutions to data governance issues.
As the global economy becomes increasingly data-driven, it's crucial to address the power imbalance between users and tech giants. Data cooperatives and government-led digital infrastructure with a citizen data agency offer promising alternatives. However, policy updates are essential to support these models, ensure data sovereignty, and enable users to benefit from the economic value of their data.
