Canada considers a “Sovereign Cloud“ to Enhance Competitiveness and Security
Recent discussions led by Mark Carney highlight a growing push for Canada to develop a “sovereign cloud,” a dedicated computing environment designed to bolster the nation’s competitiveness, security, and independence. But what exactly is a sovereign cloud, and why is Canada considering this investment?
Essentially, a sovereign cloud is a computing infrastructure used by companies to operate their services, built to adhere to the specific laws and values of a particular country. This allows users greater control over their data – dictating where it’s stored, who has access, and what legal protections apply. A key benefit is keeping both the data and the infrastructure within national borders, preventing access from foreign entities.
The impetus for Canada’s consideration stems from concerns about data security and potential foreign access. While companies like Amazon and Microsoft are developing sovereign cloud options, these remain subject to the laws of their home country, the United States. Specifically, the U.S. Cloud Act allows American authorities to request data held abroad by U.S.companies for law enforcement purposes.This poses a risk to Canadian data, particularly given ongoing trade tensions with the U.S.
the Canadian government’s goal is to establish a cloud infrastructure led by either the government itself or Canadian companies, mitigating this risk.
Though, developing a sovereign cloud is a critically important undertaking. It requires considerable financial investment – billions of dollars – to acquire the necessary chips, servers, and cooling systems to manage and analyse large volumes of data. Amazon, for example, is investing the equivalent of $12.7 billion in a european sovereign cloud project. Moreover, these systems demand massive amounts of electricity to operate.
While Guillaume Beaumier, an assistant professor of political science and international studies, anticipates strong support for the idea, he cautions that relying on a limited number of Canadian providers could lead to a less competitive market. A concentrated market could allow providers to increase prices and possibly offer services that aren’t superior to those currently available. The existing cloud market is already highly concentrated, with a few dominant players holding significant market power.
