A rchive Date
[ 13-02-2026 ]
Category
[ Information Technologies ]
sub-Categoy
[ Canada ]
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[https://progresschamber.org/insights/realists-guide-canada-digital-sovereignty/
A Realist’s Guide to Canada’s Digital Sovereignty
Josh Tabish Technology Policy Nov 4, 2025
The Government of Canada released a new white paper defining digital sovereignty and outlining how the country can protect its data, systems, and IT infrastructure in a connected world. As governments everywhere grapple with questions of digital control, the paper stands out for its clarity and realism.
Rather than calling for hard borders or a duplicative “made-in-Canada” tech stack, Ottawa takes a pragmatic view. Full digital autonomy isn’t possible, but a responsible, risk-based approach to sovereignty is manageable.
A Realistic View of Sovereignty
The paper offers a clear-eyed assessment of what can actually be done amid growing calls to defend Canada’s digital sovereignty. It acknowledges the risks of storing sensitive data in global cloud environments but resists alarmism.
“The Government of Canada cannot obtain a state of complete digital sovereignty, known as digital autonomy, due to the absolute interconnected nature of the digital world,” the paper notes.
That’s a blunt admission, but also a welcome one. The goal isn’t to rebuild the global internet within our borders – it’s to manage risk in a targeted way.
The government focuses on using a mix of legal, supply chain, and technical controls (like strong encryption) to protect critical systems and information. These measures don’t exclude global technology services or vendors; they make them safer to use for government purposes.
Embracing Cloud Innovation Securely
In a related paper on cloud security, the government highlights the benefits of cloud adoption, noting that it offers a major opportunity to modernize operations and reduce costs. From a sovereignty perspective, they also argue that a mix of technologies allows the federal government to access the strongest tools available to protect and manage its data.
This recognition matters. Too often, debates about sovereignty drift into calls for data localization or domestic-only providers, which are easy for voters to imagine and play well politically, but can lead to fewer choices, higher costs, and, potentially, weaker security.
Rather than closing doors to Canada, the government’s approach keeps them open – while ensuring it holds the keys.
Encryption and Evidence Over Fear
One of the most politically charged issues in the sovereignty debate is whether foreign laws, like the U.S. CLOUD Act, could give other governments access to Canadian data. The white paper directly notes that while Canadian data could be subject to such laws, there are strong safeguards available.
Encryption is chief among them. Many cloud service providers enable customers to encrypt their data using customer-managed encryption keys. This would ensure that only the Government of Canada controls the keys, rather than relying on the provider to manage them. Even if a foreign government compelled a cloud provider to hand over information, it would be useless without the keys. A cloud service provider would be handing over what amounts to a scrambled mess. On this, the government has said it will pursue measures to ensure it maintains exclusive control of the encryption keys.
Importantly, the paper adds that “the GC could find no documented cases of foreign governments seeking access to the data of Canadian enterprises held by suppliers.” That’s an overlooked data point in a debate that too often trades on fear rather than facts.
Avoiding Counterproductive Protectionism
Some have argued that Canada should build domestic infrastructure: Canadian clouds, Canadian data centres, Canadian companies. The paper doesn’t dismiss this instinct, but recognizes the limits: even Canadian companies rely on “components, platforms or infrastructure sourced through global supply chains” that are subject to foreign jurisdictions and market dynamics.
In other words – there’s no such thing as a purely Canadian internet. Pretending otherwise will cost taxpayers billions and still not achieve data sovereignty. Moreover, custom solutions managed on-premise are unlikely to enjoy the same level of security as commercially available providers, leaving Canadians data vulnerable to threat actors.
But that doesn’t mean Canada shouldn’t invest. The federal government is funding AI compute capacity and pursuing a sovereign cloud to support our independence and security. Public investment in digital infrastructure helps startups scale, attracts foreign investment, and strengthens resilience. But the goal should be to complement, not replace, the technology ecosystem we depend on.
The Path Forward
Canada can’t build a digital fortress, but it can define what’s critical and protect it intelligently. This can then be paired with strategic investments that build capacity at home and support our domestic tech sector.
By focusing on proportional risks, strong encryption, and smart procurement practices, the government says it can secure Canadians’ data while maintaining access to world-class technologies.
Canada’s digital future depends on getting this balance right.
Josh Tabish is Senior Director for Canada at Chamber of Progress, based in Ottawa. Before joining Chamber of Progress, he served as Director of Policy and Advocacy at the Canadian Internet Registration Authority (CIRA), where he led the organization’s domestic and international policy engagement and managed its relationships with the government.
© 2026 Chamber of Progress
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