Data stored in Canada can be subject to foreign courts, government paper warns

By Canadian Press on November 3, 2025.

OTTAWA — A new government white paper on digital sovereignty says Ottawa can’t maintain full control over its data if its data storage supplier is subject to the laws of another country.

It warns the federal government can only maintain full legal control if it delivers the service itself, or uses service providers that operate completely under Canadian jurisdiction.

The paper notes providers must follow the laws of each country in which they operate, which can create competing obligations.

It says storing data in Canada, or using a Canadian supplier, would not guarantee foreign courts wouldn’t have jurisdiction.

The federal Liberal government and Artificial Intelligence Minister Evan Solomon have been pushing the idea of digital sovereignty.

Ottawa has spent almost $1.3 billion on cloud services provided by U.S. companies since 2021, with most of the money going to Microsoft.

This report by The Canadian Press was first published Nov. 3, 2025.

Anja Karadeglija, The Canadian Press