Foreign direct investment (FDI) in the digital economy globally has increased from 5.5% of total FDI to 8.3%. The average annual FDI in the digital economy between 2021 and 2023 was $122 billion. However, FDI has not been distributed equally, with developing countries and least developed countries (LDCs) receiving a negligible share. More than one-third of greenfield projects go to developing countries, even though foreign direct investment in the digital economy has almost doubled. Within the Global South, 80% of all digital projects are concentrated in just 10 economies, mostly in Asia, while poorer countries are largely excluded.

More than $6 billion has been invested in digital services and solutions between 2020 and 2024, but essential digital infrastructure remains underfunded. Developing countries only received $9 billion in 2024, less than $1 billion worth of investments per month, against the $62 billion needed annually just to catch up with infrastructure growth.

Fintech and data centers dominate the sectoral investment. Projects are concentrated in Asia and Latin America. For example, in 2024, there were 206 fintech ventures in developing economies in Asia, compared to just 18 in Africa. Additionally, only 3% of all reported data center investments went to Asia.

National digital strategies have been produced in the great majority of developing (86%) and least developed (80%) countries, but only 20% of them connect with investment promotion agencies (IPAs). Additionally, legal frameworks (such as those pertaining to data governance, intellectual property, and competition) are inadequate, particularly in LDCs, which further restricts their ability to draw in and hold on to investment. The global digital divide will probably be exacerbated by the uneven increase of investment throughout digital development, which will leave many nations missing out on the economic and technological advantages enjoyed by a small number of nations.