Canada wants to detangle its data from U.S. tech giants. Can it be done? – The Globe and Mail Canada wants to detangle its data from U.S. tech giants. Can it be done? – The Globe and Mail

Amidst the turbulence of an ongoing trade war with the U.S., a central concern emerging from policymakers is the need for Canada to build sovereign tech and AI solutions. With a longstanding reliance on foreign tech companies, there is increasing pressure for Canada to develop a sovereign cloud to establish independence and control over its data.

Whether a company can be regarded as a sovereign cloud provider is not black and white, as there are many factors at play. In this context, sovereignty means that Canada has control over the chips, data centres, models and data that comprise cloud computing and AI. The location and ownership of the data centres, and the origins of the hardware within the facilities must also be considered. This end-to-end control aims to minimize the risk of being required to turn over Canadians’ data by a foreign court order. That said, even Canadian cloud companies may not be beyond the reach of U.S. courts if those companies have cross-border operations, Michael Fekete, a partner in Osler’s Technology Group, wrote in a recent Update: Data sovereignty in light of the CLOUD Act: back to the future?

Michael considers how total digital sovereignty would rely on Canadian companies that do not have an international presence and ultimately lack expertise and funding. He tells The Globe and Mail, “[t]hat doesn’t bode well for having access to cutting-edge productivity-enhancing technologies.” Developing custom solutions is challenging and costly, he adds, while “the alternatives are commercially available tools and solutions that have large user bases and billions of dollars being invested, so you have more out-of-the-box functionality and less risk.”

In its pursuit of sovereignty, the government will have to undertake risk assessments that looking at all relevant factors, including the sensitivity of the data, the likelihood of data being subject to a foreign order for disclosure and technological tools that keep the control over data in the hands of the customer. While data involving national security may necessitate “sovereign” solutions, less sensitive data may warrant a different approach.

If you have a subscription, you can read the full article by Joe Castaldo and Pippa Norman, “Canada wants to detangle its data from U.S. tech giants. Can it be done?” on The Globe and Mail website.