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Canadians are waking up to just how much power American tech companies have over their digital life. In April, Microsoft confirmed that U.S. law can override foreign privacy protections, even for data stored on servers outside the United States. That means if Canadian data is hosted by Microsoft, Amazon or Google, it can be accessed by U.S. authorities.
For Guillaume Beaumier, an assistant professor of political science and international studies at École nationale d’administration publique (ENAP) in Quebec City, it’s a clear sign Canada needs to take digital sovereignty seriously. In a recent Policy Options article, he argues that Canada has grown too dependent on U.S. cloud providers and tech infrastructure, and risks losing control over its economy, governance and security in the digital era.
National Post spoke to Beaumier about what digital sovereignty means and what steps Canada should be taking now. This interview has been edited and condensed for clarity and length.
What does digital sovereignty mean in the Canadian context?
I think you can define digital sovereignty in multiple ways, and that’s the issue with the concept.
It can relate to the ability of the Canadian government to control its own digital ecosystem through regulation, and having the availability to force or influence companies to act in certain ways. It’s also, to some extent, the ability to have the economic independence to be able to produce digital services for Canadian citizens, in ways that are not dependent on having access to services coming from other places in the world.
It can also relate more broadly to the security of the nation. If you’re depending on other countries for accessing specific digital services, in times of crisis, you can end up in a position where you don’t have access to the services, and so the broader security of the country also depends on having the ability to produce the services on your own.
Why is digital sovereignty becoming an urgent issue?
For a very long time the United States has been using its control over the digital infrastructure around the world, so a lot of the digital services that we rely on are American companies and they also rely on physical infrastructures that are located in the United States. You can think of data centres in that regard.
And so, for a very long time, we were fine with it, we forgot that other countries like Russia or China, might have used this control over this digital ecosystem to its advantage, to survey the world, to sometimes even impede other countries.
You can see again what happened after the invasion of Ukraine by Russia, where Microsoft stopped offering some of its services in Russia. And so, like I said, for a while most countries around the world would have been fine with that, especially western countries because we were allied countries with the United States, even sometimes collaborating with them. But as the (Donald) Trump administration came in and took a more coercive approach towards its traditional allies, it’s also making these countries more insecure about their dependence on the United States.
What are some of the biggest gaps in Canada’s digital sovereignty?
I think that we do lack, to a large extent, sufficient capacity to operate on our own, to have a digital ecosystem that can function without American companies. And so, if you think about our digital ecosystem, most social media platforms, if not all, are American companies. If you think about data centres, the main ones that are operating right now and that we rely on, are either in the United States or are owned by American companies on Canadian soil.
On the regulatory side, we have also seen the government struggling over the years, to enforce its own regulations, or to even want to regulate these platforms. So we threaten these companies, Google and Meta, to basically leave the country.
More recently, the government decided to move back on this decision to impose digital services taxes, and it’s an example of where the Canadian government seems to be struggling, because it relies primarily on American companies.
So to summarize what I just said, I think just this lack of the ability to offer basic digital services by Canadian companies is one of the big gaps right now.
What risks could Canada face if it continues to rely heavily on U.S.-based cloud providers and tech companies?
In times of crisis, they can be used as leverage against the Canadian government, so like during this trade negotiation, they can threaten to stop offering some services to Canada. There’s also the risk that when the government tries to regulate these companies, they can just threaten to exit the country.
You can see in the example of Meta blocking news because of being asked to share the revenue with news organizations. This has left our media ecosystem in a worse-off position. And in times where there are forest fires or other emergencies, information can be more difficult to access by citizens.
What do you suggest Canada should do?
I think there should be a strategy to invest and develop more national digital ecosystems, to reduce the reliance on American companies. It also should not shy away from regulating these big tech companies and level the playing field for Canadian companies. Basically, making sure they are being taxed, and that they contribute to the national economy.
Also, promoting the use of more open source software, in public administration and the digital ecosystem, could help reduce reliance on big tech companies, and prioritize the development of more digital expertise in Canada.
When you’re thinking of all the big projects the government wants to launch, like big national infrastructure projects, I think it would be a good moment to invest in having more data centres owned by Canadian companies, funded by the government.
With the new investments coming in the defence sector, some money could go towards the development of artificial intelligence (AI). I think this broad national plan to invest in Canadian digital capacities would be an essential thing to do in the years to come.
How can Canada balance digital sovereignty with the need to remain globally competitive and attract tech investment?
I think we just need to find a balance between still being open, we still want to rely on the valuable services that come from the United States, and elsewhere in the world, but to ensure our resilience in times of crisis, and have some basic capacities to function without the use of these services coming from the rest of the world.
This is the latest in a National Post series on How Canada Wins. Read earlier instalments here.
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