Canada is aiming to construct data centers that are not only physically situated within the country but also under Canadian control. This distinction is seen as crucial in reducing reliance on U.S. tech giants and ensuring that Canadian data remains subject to Canadian regulations. As Ottawa evaluates over 160 data-center proposals to meet the rising demands of artificial intelligence, the concept of “sovereign” infrastructure is facing a critical challenge. The key question now is the extent of control Canada can truly exert over data centers that might still rely on foreign hardware, cater to foreign clients, and operate within digital networks that do not strictly adhere to national boundaries.
Ritesh Kotak, a technology advisor and lawyer based in Toronto, emphasized the significance of this issue, stating that it could be one of the most significant technology challenges for the country. Many countries, including Canada, heavily depend on U.S. companies for digital and cloud services. This reliance has raised concerns, exemplified by a recent lawsuit where a Canadian challenged the U.S. Department of Homeland Security for allegedly seeking extensive personal information through Google following critical social media posts about the Trump administration.
The push for Canadian-based AI infrastructure is fueled by worries about data sovereignty. Telus has become the first successful applicant for the federal data-center program, although negotiations are ongoing, and no federal funding has been confirmed. Evan Solomon, the minister of artificial intelligence and digital innovation, emphasized that new data centers built in Canada with federal support must adhere to a sovereignty requirement.
The federal government, alongside various Canadian tech leaders, highlights the importance of data sovereignty. Mirko Bibic, CEO of Bell Canada, expressed enthusiasm about the growing momentum in developing large-scale AI infrastructure in Canada. The government has committed $925.6 million over five years to bolster “large-scale sovereign public AI infrastructure.”
However, the mere construction of data centers in Canada does not resolve control issues entirely. Not all equipment will be domestically produced. For instance, Telus’s new facilities will eventually house over 60,000 graphics processing units from Nvidia. Solomon clarified that data-center developers and operators will not be mandated to serve exclusively Canadian entities, leaving open the possibility of hosting diverse data.
Louis Têtu, executive chairman of Montreal-based Coveo, stressed the need for Canadian companies to responsibly manage the infrastructure. He emphasized the importance of utilizing cutting-edge global technology while ensuring Canadian firms oversee the network with Canadian governance to safeguard against external influences.
The increased focus on data sovereignty has garnered support from privacy experts, who anticipate further regulations from Ottawa as part of the promised federal AI strategy. Sharon Polsky, president of the Privacy & Access Council of Canada, highlighted the importance of Canadian ownership of data-center and telecommunications companies. Concerns persist about the complexities of containing Canadian data within national borders in the digital realm, where information flows are not bound by traditional borders. Green Edge Computing, a Victoria-based startup specializing in small-scale data centers, underscores the necessity of not only storing data locally but also monitoring its pathways in the digital landscape.