Canada is a sovereign nation. We control our borders. We write our own laws. We have our own institutions and make our own decisions.
But more and more of Canada’s economic and social activity is digital. Our businesses run in the cloud. Our governments deliver services online. Canadians store files, pictures, conversations and personal information on servers located in other countries. Teachers, lecturers and professors use digital platforms to reach their students. Doctors rely on interconnected systems to operate hospitals. Municipalities use software to run utilities, traffic systems and public transit. Banks rely on technology to run ATMs, handle transactions and manage funds. Software runs traffic lights. Artificial intelligence is becoming another piece of that critical infrastructure.
Who controls that infrastructure? How much of our digital lives can ultimately be controlled by organizations or governments that do not share Canada’s values or have Canada’s best interests in mind?
That is the question of digital sovereignty.
What Is Digital Sovereignty?
The Government of Canada describes digital sovereignty as the ability to exercise control over digital infrastructure, data and intellectual property, as well as the ability to make independent decisions about digital assets wherever the underlying technologies may have been developed, hosted or operated.
Digital sovereignty is not simply about “where is our data stored?”
That is important, but digital sovereignty also includes software, cloud infrastructure, connectivity, communications, cybersecurity, artificial intelligence, intellectual property, supply chains, skills and the ability to maintain critical digital services.
Canada is not alone. No country benefits from or should attempt complete technological independence. Canada has allies and we participate in a global technology ecosystem.
But sovereignty means choices.
If Canada has control or enough Canadians have enough control over our digital infrastructure, then Canada can make decisions about where sensitive information is stored, which technologies are used, who can access critical systems, how systems can be updated, and whether Canada can migrate to another provider if that relationship sours.
Digital sovereignty matters because it ensures that Canada maintains those choices.
Data Residency Is Not the Same as Data Sovereignty
Storing data on a Canadian server is not the same thing as digital sovereignty.
Data residency means where the information is stored. Data sovereignty is about whose laws apply to the information and systems that process it.
In its documentation on cloud computing, the Government of Canada has explicitly acknowledged this distinction. A cloud service provider may very well have data centres located in Canada, but ultimately be subject to the laws of another country. Under certain circumstances and specific pieces of legislation, those companies may be required to provide access to information to foreign governments.
As the Canadian Centre for Cyber Security puts it, organizations should consider not just where information is stored, but every jurisdiction that “could exercise legal authority over the organization or service provider.”
Data residency alone does not equal sovereignty.
Canada Has Become Deeply Dependent on Digital Infrastructure
Canada loves to talk about infrastructure. Many politicians spend a lot of time talking about roads, bridges and physical infrastructure.
Canada also relies heavily on digital infrastructure. Software runs everything.
While digital infrastructure might not be as visible as bridges and highways, cloud computing is one of the fastest-growing technologies used by Canadian businesses. Data from Statistics Canada shows that among Canadian businesses in 2023, cloud computing was the most widely used information and communications technology, with 48% of businesses using cloud services, up from 45% in 2021. In information and cultural industries, cloud adoption was higher still at 81%.
Fully 92.8% of Canadian businesses reported interacting with federal digital government services in 2023.
The point is simple: Canada’s economy runs on digital infrastructure. Canadian public institutions rely on software, connectivity and networks to operate.
Once something becomes critical infrastructure, it also becomes a strategic concern.
Canada would be concerned if the majority of its electricity came from power generation that ultimately foreign governments could shut off at a moment’s notice. Canada has always been concerned about dependence on foreign telecommunications or transportation infrastructure.
Canada should be just as concerned about digital infrastructure.
Cybersecurity Makes Sovereignty a National Security Issue
Cybersecurity is why this is a national security issue.
The Canadian Centre for Cyber Security publishes an annual threat assessment. Its most recent report warns of growing threats from state-sponsored hacking groups. It notes state-sponsored groups are targeting Canadian critical infrastructure networks and may be looking to position themselves inside Canadian networks to launch disruptive or destructive attacks in the future.
Software runs Canadian critical infrastructure. Energy systems, transportation networks, communications, water systems, financial institutions, governments services, supply chains… they all rely on software and network connectivity to function.
Digital sovereignty is not a solution to cyberattacks.
Maintaining control over your own infrastructure, software, access, data, backups and technical expertise can limit the number of risks you accept whenever a cyberattack occurs.
You can’t completely prevent something bad from happening. But resilience is about being able to recover when something does go wrong.
Having sovereignty over your own digital infrastructure is one part of that resilience.
The AI Revolution Makes the Question Even Bigger
Artificial intelligence is going to put even more stress on the question of digital sovereignty.
AI needs computers. It needs data. It needs specialized chips and hardware.
The Canadian government recognizes this issue. Its recent national AI strategy noted that Canada’s sovereign compute capacity “remains relatively underdeveloped,” especially in cloud infrastructure.
Canada was home to many of the researchers who built modern AI. But owning the research doesn’t mean Canada controls the infrastructure necessary to actually use that technology at scale.
Canada’s strategy identifies three pillars to sovereignty in the age of AI: compute and connectivity, data, and talent.
Compute and connectivity covers hardware, data centres and networking components. Having access to talent covers everything from cybersecurity skills to access to the researchers and developers who design new technologies.
It matters because if Canada lacks domestic access to computing infrastructure then Canada ultimately answers questions about pricing, availability, acceptable use policies and access.
Canada is already investing in initiatives like the Canadian Sovereign AI Compute Strategy in order to address these concerns.
That’s good news. But if Canadian AI depends entirely on infrastructure Canada can’t control, then sovereign AI becomes pure illusion.
Canada Is Running Out of Digital Choices
Digital sovereignty also relates to Canada’s ability to choose international vendors and technologies if they’re best for the job.
Just because software runs on foreign infrastructure doesn’t mean Canada should dismiss that technology.
Canada has a technology ecosystem made up of domestic and foreign companies. Canadians buy apps from American companies all the time, just like Americans buy Angry Birds from Canadians.
Canada’s technology infrastructure has been built with many contributions from American companies. Some Canadian companies have built successful businesses serving American markets. For decades, Canadian businesses, governments and organizations have bought technology from American companies.
There is nothing inherently wrong with that.
Buying technology from another country is not a sovereignty risk, unless Canada has no other viable choice.
As the Canadian Competition Bureau recently found, Canadians have lost some of their ability to choose between cloud providers, largely due to concentration in the technology industry.
Buying domestic isn’t inherently patriotic. But when Canada has multiple Canadian companies that can provide competitive services meeting Canadian requirements, we should buy Canadian.
This creates jobs. It creates businesses. It builds Canadian intellectual property. It develops Canadian expertise. It provides Canadian organizations with additional options. And it ensures more of Canada’s technology dollars stay in Canada.
Digital sovereignty can help build Canada’s technology economy.
Vendor Lock-In Is Also a Sovereignty Issue
Digital sovereignty is also the freedom to switch.
Just because you buy a piece of technology today doesn’t mean you’ll want to use it tomorrow.
Costs could increase. Service could decline. Requirements could change. Technology could become obsolete. Suppliers may be acquired by other companies.
Canada should always have the ability to switch technology vendors if that technology no longer meets Canadian needs.
If all your information is stored in proprietary formats that can only be accessed by one company’s ecosystem. If you’re using proprietary cloud services that prevent you from easily switching providers. If you don’t have options, you don’t have sovereignty.
That’s why open standards, interoperability and open source software matters.
Open Source Can Help Us Keep Our Options Open
Using open source software is not a magic formula that guarantees digital sovereignty.
You could run an open source application, but if everything else is still on foreign-controlled infrastructure you haven’t really gained anything.
But open source is one tool that can help improve digital sovereignty. Because with open source software, you always have the option of running that software yourself.
You can inspect the source code. You can modify it. You can audit it. You can make sure you always have a copy. You can switch providers without giving up access to the technology you use.
The source code doesn’t belong to anyone who can arbitrarily stop you from using it.
That’s flexibility.
That’s why the Canadian Digital Service has advocated working in the open, using open standards and considering open source software.
Digital sovereignty isn’t just about technology. It’s about building Canadian technology companies.
Canada Has the Skills
Finally, digital sovereignty also requires skills.
It doesn’t matter if you run open source software or own every server in the country if you don’t have anybody who can actually operate that technology.
Digital sovereignty requires developers, IT professionals, cybersecurity professionals, system administrators, technicians and students who understand technology inside and out.
Canada has thousands of IT professionals and web developers who can work with open technologies. We have cybersecurity experts who can help keep Canadians safe online. Canada has IT system administrators capable of operating domestic infrastructure.
But we need more of them.
We need Canadian students learning about technology at a curriculum level. We need businesses large and small that can deploy and support open source software and open technologies. We need governments that can evaluate technology and don’t just trust every recommendation vendors make. We need IT professionals who can operate open infrastructure independent of commercial options. And we need forums where IT professionals can collaborate and share knowledge with one another.
If we rely on foreign servers and foreign tech but lack the domestic capability to run those systems ourselves, do we really control them?
Digital skills are part of national infrastructure too.
Digital Sovereignty Is About Maintaining Canadian Choices
Digital sovereignty is not about forcing Canadian organizations to buy Canadian technology.
It’s not about limiting Canadians to only American technology.
Digital sovereignty is ensuring Canada maintains the ability to choose.
Canada should use American technology when it makes sense. Canadian businesses should be able to sell to American customers. We should continue to collaborate with American researchers. We welcome international students and workers who want to live and study in Canada. Open source itself is about international collaboration across borders.
Digital sovereignty isn’t about protectionism. It isn’t about technological isolationism or excluding foreign technology.
Digital sovereignty is about preserving the ability to choose.
We should choose American technology when it’s the right choice. We should choose European technology when it meets our requirements. We should work with Canadian companies when they offer competitive services that meet Canadian requirements.
Digital sovereignty means never reaching a point where Canada cannot function without American technology. Because that is the point where Canada has lost its ability to make that choice.
Canadian Organizations Have Choices to Make Too
Digital sovereignty is as much about Canadian organizations as it is about Government of Canada policy.
Do you know where your critical data is stored? Do you know who controls the infrastructure it runs on? Who controls your software? Can you easily move your information to another provider if your circumstances change?
Governments are just one part of the conversation. Private companies, universities and not-for-profit organizations all need to start treating dependencies as strategic risks that deserve a risk mitigation strategy.
Canada has choices to make about digital sovereignty. But Canadian organizations do too.
Conclusion
Digital sovereignty is becoming a mainstream conversation because digital infrastructure now underpins society. Software controls how Canadians communicate with each other. Software runs how businesses operate. Governments use technology to deliver services. Infrastructure that runs water, electricity, transportation and even medical devices run on software.
We are building a society that depends on technology we don’t control. Artificial intelligence is going to make that problem much worse.
Canada has choices to make about digital sovereignty. Will Canada be able to control its own digital future?
As technology advances, Canada also has a choice about who controls that technology.
Canada doesn’t have to build everything domestically. We don’t have to disconnect from the rest of the world. Digital sovereignty shouldn’t become an excuse for nationalism.
But Canada does need choices.
Canada should be able to store sensitive data wherever we want to store it. We should choose technology that meets Canadian standards, whether it’s Canadian or not. If American laws change, Canada should have alternatives to American technology.
Digital sovereignty is about maintaining that option.
We should know where our data is stored. We should know who has jurisdiction over it. We should have options if American companies change their pricing structure or priorities. Canada should have domestic infrastructure and technology providers capable of keeping the lights on if those suppliers fail us. And Canada should support Canadian businesses who can provide those alternatives to us.
Digital sovereignty isn’t just about government policy. When you’re buying technology, choose open technologies whenever practical. Choose open standards and open source software that gives Canadians the freedom to change service providers without losing access to the technology you use.
Canada should have choices about its digital future.
Sovereignty isn’t defined by lines on a map anymore. In the digital age, it’s also about control over technology.
Sources
Government of Canada — Digital Sovereignty
Shared Services Canada. Overview of Canada's approach to digital sovereignty, including Canadian control of data, technology and essential digital services.
Digital Sovereignty — Canada.ca
Government of Canada — Digital Sovereignty: A Framework to Improve Digital Readiness
Government framework defining digital sovereignty and examining legal, security, privacy, workforce, supply-chain and operational considerations.
Digital Sovereignty Framework — Canada.ca
Shared Services Canada — 2026–27 Departmental Plan
Current federal plans concerning sovereign cloud infrastructure, Canadian-controlled AI services, domestic technology capacity and digital resilience.
Shared Services Canada 2026–27 Departmental Plan
Government of Canada — Data Sovereignty and Public Cloud
Discussion of the differences between data residency, security and sovereignty, including jurisdictional risks associated with foreign-controlled cloud providers.
Data Sovereignty and Public Cloud — Canada.ca
Canadian Centre for Cyber Security — National Cyber Threat Assessment 2025–2026
Assessment of cybercrime, state-sponsored threats and risks to Canadian critical infrastructure.
National Cyber Threat Assessment 2025–2026
Canadian Centre for Cyber Security — System and Services Acquisition
Guidance addressing data sovereignty, residency, jurisdiction and the risks created by foreign legal compulsion.
Cyber Centre Guidance on Sovereignty and Jurisdiction
Statistics Canada — Survey of Digital Technology and Internet Use, 2023
Statistics concerning Canadian business adoption of cloud computing, AI and other digital technologies.
Survey of Digital Technology and Internet Use — Statistics Canada
Statistics Canada — Digital Government Services
Research concerning Canadian individuals' and businesses' use of federal digital government services.
Who Uses Digital Government Services? — Statistics Canada
Innovation, Science and Economic Development Canada — Canada's National Artificial Intelligence Strategy: AI for All
Current federal strategy addressing sovereign compute, cloud infrastructure, connectivity, Canadian AI capabilities and dependence on foreign infrastructure.
Canada's National Artificial Intelligence Strategy
Innovation, Science and Economic Development Canada — Canadian Sovereign AI Compute Strategy
Federal strategy and investment program designed to expand domestic AI computing capacity and support Canadian researchers and businesses.
Canadian Sovereign AI Compute Strategy
Competition Bureau Canada — Consultation on Artificial Intelligence and Competition
Summary of stakeholder concerns and evidence relating to concentration, cloud infrastructure, compute resources and competition within the AI technology stack.
AI and Competition: What We Heard — Competition Bureau Canada
Canadian Digital Service — Why Open Source Matters
Government discussion of open source software, reuse, transparency, collaboration, open standards and Government of Canada digital policy.
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