The increasing use of artificial intelligence and digital technologies has fundamentally altered global power dynamics, thereby introducing a new era of “Digital Colonialism.” It is different from traditional colonialism, which was based on territorial conquest and political domination. However, digital colonialism is exercised through control of data, digital infrastructure, algorithms and platform governance. This paper discusses the shift from historical colonial structures and processes to new forms of digital dependencies where, frequently, multinational technology corporations and platforms powered by artificial intelligence set themselves up as quasi-sovereign actors. It is diluting the regulatory capacity of nation-states. This study examines the competing nations of the United States, China, the European Union, and India. It is a new way of expanding their presence beyond national physical borders. Furthermore, the paper highlights the multidimensional risks that digital dependencies carry, ranging from economic vulnerability to political manipulation and cybersecurity issues. The research shows how dependency on foreign-owned digital platforms can undermine national autonomy and the inequalities of power between the world’s rich and poor. It concludes by providing recommendations which include strengthening domestic digital infrastructure, adoption of robust data governance, as well as promotion of digital public goods. This will contribute to a deeper understanding of the role of digital technologies in redefining sovereignty, power, and governance in the contemporary global order.