A century ago, international wars were fought for control of people, land, seas and natural resources, such as oil and precious metals. Today, nations are fighting for control of digital resources, like data, algorithms, networks, computer hardware, and relevant materials, such as rare earths. The tussle over Arm Holdings, the British computer chip design company, is just one battleground in this global war for digital sovereignty and supremacy. To remain competitive, the UK needs to update its industrial strategy for the digital age. The proposed National Security and Investment Bill presents an opportunity to do this. However, the UK must be careful to select the appropriate shade of digital sovereignty — one that safeguards the UK’s strategic digital assets, whilst averting mercantilism, a tit-for-tat trade war, and a slide into digital autarky. A Utopian quest for digital self-sufficiency would be neither realistic nor beneficial for the UK economy.