Canadian Digital Sovereignty: A Critical Imperative
Canada’s digital sovereignty is largely an illusion. From data hosting to internet traffic and critical infrastructure, the country remains heavily dependent on foreign—mainly American—technologies and services, as I discussed in my March article in Les Affaires.
From a digital standpoint, we are little more than a colony. This dependency exposes Canada to growing economic, strategic, and security risks, especially at a time when cybersecurity and data control are central to geopolitical tensions.
Last month’s article prompted several industry leaders to openly denounce this issue. I hope that even the most technophobic leaders now acknowledge how vulnerable Canada truly is. So, how can we reverse this situation?
A Multi-Pronged Strategy for True Sovereignty
I propose a comprehensive strategy to overhaul the technological value chain and end our colonial digital status. This includes: a national framework for digital sovereignty, prioritizing the semiconductor industry, enhancing telecommunications autonomy, promoting local procurement, supporting truly innovative data centers, and adopting a hybrid approach to building sovereign solutions. These reforms will require years of sustained effort and significant investment before Canada can fully claim independence.
The Urgency of a Clear National Framework
Today, many companies claim to be “100% sovereign,” but based on what criteria? Some only host their data in Canada or rely on foreign certifications, undermining the credibility of their claims.
A true sovereignty framework should define clear criteria:
- Canadian control
- Domestic hosting
- Robust cybersecurity
- No foreign interference
- Local IP management
It should also include innovation requirements (R&D, knowledge transfer) and job creation in Canada. Public contract eligibility should depend on these standards, encouraging companies to serve the national interest and boost local competitiveness.
Semiconductors: A Critical Lever
- Make Semiconductors a National Priority
Semiconductors are key to economic and military competitiveness. Without secure access, sectors like AI and cloud computing could stagnate. - Act Before It’s Too Late
Over 90% of advanced chips are made by TSMC in Taiwan. The U.S., Japan, and EU are already securing local production. Canada must act too. - Build on Existing Strengths
IBM Bromont is North America’s largest test and assembly plant. Combined with strong universities, Canada has a solid foundation. - Forge Strategic Partnerships
Canada’s rare earths and green energy are assets. Partnering with allies to co-invest in chip infrastructure is a smart geopolitical move. - Support Major Investments
Like the U.S. CHIPS Act, Canada should fund innovation with subsidies, tax credits, and regulatory clarity.
Strengthen Local Innovation Through Procurement
American tech giants dominate thanks to frequent public contracts—even from Canadian governments. Local firms can’t compete without access to similar opportunities.
Canada must adopt true local purchasing policies. These policies can:
- Stimulate innovation
- Create high-value jobs
- Strengthen sovereignty
Investing in local talent and technology ensures global competitiveness and strategic autonomy.
Telecommunications & Data Centers
Most Canadian internet traffic still flows through U.S. hubs, exposing us to foreign surveillance and laws like the CLOUD Act. Canada should:
- Build more local Internet Exchange Points (IXPs)
- Deploy direct undersea cables to Europe and Asia
We also need to encourage local data centers to innovate—not just serve as cheap electricity hubs for foreign cloud giants. These centers should:
- Develop Canadian solutions
- Support AI and HPC research
- Drive real technological sovereignty
A Hybrid Strategy for Critical Systems
For defense, public administration, and AI, relying solely on foreign tech is risky—but rebuilding from scratch is unrealistic.
Like India and China, Canada should:
- Develop core national infrastructure (e.g., an "India Stack"-style system)
- Support open technologies like Linux and RISC-V
- Use a mix of sovereign and foreign tools where appropriate
Conclusion
Digital sovereignty requires bold bets and a willingness to tolerate some failure to fuel innovation. We need:
- Sovereign OS and virtualization tools
- Custom Canadian semiconductors
- A highly skilled tech workforce
Public-private partnerships are key:
The government creates the framework and incentives.
The private sector builds, invests, and iterates.
This will ensure Canada can secure critical infrastructure, withstand external pressure, and lead in the digital age.