State Control of Colocated Servers

Regulators can neutralize latency advantages by forcing the removal or relocation of colocated servers inside exchange data centers, reshaping market microstructure and redistributing rent away from high‑frequency players. Such moves are a low‑politics but high‑impact lever: they affect domestic algorithmic traders, foreign market participants, and the international design of trading infrastructure. — This reframes sovereignty as physical control over proximity‑based infrastructure and implies policymakers must account for server‑location rules in finance, trade and national‑security planning.