Prioritizing Digital Sovereignty: A Matter of National Security

Recent international events have triggered a collective awakening. There’s no question that digital sovereignty has become a national priority. For too long, Canada has been dependent on American tech giants, who control and have access to the lion’s share of our vital data. This situation undermines our national security and exposes our institutions, businesses and citizens to the risks of foreign interference. Without a game plan to regain control of our data, the consequences could be devastating.

Time to act. Time to take back control.

Donald Trump’s return to the White House has reignited geopolitical tensions and highlighted the need for a strong Canadian digital sovereignty strategy. The current international context is a reminder that we need to protect our data from outside influence, particularly from the United States and China.

Today, the reality is that virtually all Canadian data is stored and managed by American companies subject to the CLOUD Act. This law allows US authorities to access data hosted on servers—even if located on Canadian soil—if they belong to US-based companies. Recently, it was revealed that Elon Musk has had access to the sensitive banking data of all Americans via his new political role.

”A provision of the CLOUD Act requires any company incorporated in the United States, as well as companies controlled by it, to disclose data under its control to US authorities, at their request, regardless of where that data is stored. […] But we can no longer run the risk of leaving our data and processing systems in the hands of companies subject to liberticidal measures. All of our resources should be focused on regaining our digital sovereignty as an urgent priority. Our safety as individuals and as a country depends on it.”

– Pierre Trudel, Professor Emeritus, Université de Montréal. Le Devoir, March 18, 2025

Time and again, Microsoft and Amazon have been forced to make decisions influenced by US policy, causing major economic damage internationally. Take the example of the Netherlands’ Amsterdam Trade Bank (ATB), which went bankrupt after Microsoft cut off access to its email system in response to US sanctions.¹ If a similar situation were to occur in Canada, our economy and institutions could be seriously affected.

A $10.3B USD² market largely dominated by US Big Tech

Even when hosted on Canadian soil, data entrusted to US clouds is subject to US laws, such as the CLOUD Act.

Our recommendations to achieve Canada’s digital sovereignty

We believe it is essential for the government to commit to these key measures without delay :

1. Make digital sovereignty a priority for national security

• Place this responsibility under the direct authority of the Prime Minister, and integrate it into relevant ministerial mandates.

2. Adopt a “Buy Canadian Cloud Act” policy

• Establish a Canadian sovereign cloud for sensitive data.
• Modify government procurement criteria to prioritize Canadian cloud solutions and not immediately exclude Canadian providers as is currently the case.
• Impose a moratorium on awarding strategic contracts to foreign companies until a robust Canadian ecosystem is in place.
• Defend digital sovereignty when renegotiating CUSMA to reduce our trade deficit in services, which stood at over $19 billion in 2023.³
• Strategically allocate public contracts to avoid hyperdependence on foreign multinationals.

3. Support the development of a robust Canadian sovereign cloud ecosystem

• Establish an industry network to stimulate innovation, research and development with regards to a Canadian sovereign cloud.
• Support Canadian open-source projects, particularly in the areas of collaboration tools and AI (develop Canadian software).
• Support Canadian cybersecurity SMEs and startups to develop local solutions that are resistant to foreign interference.

Conclusion: Let’s act in time. Let’s act now.

Digital sovereignty is critical to Canada’s security and prosperity. In 2025, political parties must commit to taking concrete action to protect Canadians’ data and ensure the country’s digital sovereignty. This is no time for half-measures: it’s time to take control of our digital destiny. Canada must equip itself with the tools to control its future.

Luckily, there are already strong players in our cloud and cybersecurity industry. A handful of Canadian companies have brought together distinctive expertise to develop technologically efficient cloud solutions that protect us from the devastating and imminent consequences of foreign interference.

Without leadership from the Canadian government, it will be very difficult for Canadian companies to meet all the challenges ahead. The government must put in place initiatives that empower Canadian experts to be part of the solution. A number of countries, including France, Sweden and Australia, took steps several years ago to reduce their dependence on foreign giants and the risk of concentration and captive management of their data. It’s time for Canada to follow suit. It’s time for Canadian leadership.

”All the pieces are in place for us to switch to a Canadian sovereign cloud and reclaim our digital autonomy. Every decision we make, every contract we sign helps shape the future—our future. We have the expertise, and we have the sustainable infrastructure to support our needs. If we want to break free from tech giants and keep our economy strong, we must start right here, right now. ” 

Stéphane Garneau, President, Micrologic 
Time to Break Free from Big Tech! (January 28 2025)

Sources:

¹ Microsoft hinders Amsterdam Trade Bank’s bankruptcy case – Techzine Global 
² Statista
³ Canada-US Trade: Getting Up To Speed | Post