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Economics

Using Bilateral Investment Treaties to Protect Digital Infrastructure

Quick fact

BITs are increasingly being used by technology companies to claim billions in compensation when governments restrict or seize their digital operations, such as data centers and undersea cables, under the guise of regulation.

Why this is interesting

Imagine a foreign company builds a massive data center in your country, then the government changes the rules. Can the company sue you for lost profits? In many cases, yes—thanks to a bilateral investment treaty.