The Canadian government has raised concerns about the control over data stored within its borders, highlighting that data storage providers subject to foreign laws may compromise digital sovereignty. A recent white paper suggests that Ottawa can only ensure full legal control over its data if it manages storage internally or uses providers operating entirely under Canadian jurisdiction. The document emphasizes that storing data in Canada does not automatically shield it from foreign legal access, citing the U.S. Cloud Act as an example, which allows U.S. authorities to request data from American companies, even if stored abroad, for law enforcement purposes.
The Canadian government, led by AI Minister Evan Solomon, is exploring the concept of a “sovereign cloud” to align data services with national laws and values. Despite investing heavily in cloud services from U.S. giants like Amazon, Microsoft, and Google, concerns persist about the potential reach of U.S. laws over Canadian data. Solomon acknowledges the issues posed by the Cloud Act but assures that any data access requires a judicial warrant.
A task force has been established to draft recommendations for an updated AI strategy, though its composition has been criticized for being too industry-focused. An open letter from experts and civil society groups calls for a more inclusive consultation process. Meanwhile, Canadian telecom companies are positioning themselves to participate in the sovereign cloud initiative, although reliance on U.S. technology components could still pose risks of foreign data access.
