Does Canada Have a Digital Sovereignty Crisis?

Current events got us thinking about this…

Canada's reliance on foreign IT infrastructure is akin to depending on other nations for our energy or food supply. What does digital sovereignty look like? Digital sovereignty means having control over the infrastructure, data, and digital services that power our economy and government. It ensures that critical services remain under national jurisdiction, secure from foreign influence or economic coercion. Just as we manage our natural resources, we need to prioritize our digital infrastructure to ensure security, privacy, and economic independence.

Relying heavily on a single foreign provider for critical IT services exposes Canada to significant risks. Geopolitical tensions, policy changes, or security concerns in another country can directly impact our access to essential digital resources. By diversifying our IT infrastructure and utilizing a mix of domestic and international providers, we can mitigate these vulnerabilities. Investing in homegrown solutions not only enhances our security but also stimulates the Canadian tech industry. Supporting local startups and established companies fosters innovation, creates jobs, and ensures that our digital infrastructure aligns with national values and legal frameworks.

When forming partnerships with foreign tech firms, it's crucial to assess who their affiliations connect us to. It's important to dig a little deeper, employ some enhanced due diligence and get a sense of a partner's political exposure. A partnership that seems beneficial on the surface may inadvertently expose Canadian data to foreign governments or entities with differing interests. Thorough due diligence helps ensure that our collaborations don't compromise national security or citizen privacy.

A recent example highlighting the importance of scrutinizing partnerships is Australia's decision to ban Kaspersky Labs' software from government systems. On February 24, 2025, the Australian government mandated the removal of all Kaspersky products, citing unacceptable security risks related to foreign interference, espionage, and sabotage. (Read more)

Stephanie Foster, Secretary of the Department of Home Affairs, stated, "After considering threat and risk analysis, I have determined that the use of Kaspersky Lab products and web services by Australian Government entities poses an unacceptable security risk."

This decisive action underscores the necessity for countries like Canada to evaluate the origins and affiliations of their IT service providers. Entrusting critical infrastructure to companies with potential ties to foreign governments can jeopardize national security.

Why does this matter to individuals and businesses? Somewhat a rhetorical question for thought, but here are a few ideas:

• When personal data is stored on foreign servers, it becomes subject to external laws and oversight. This puts sensitive information like banking details, health records, and personal communications at risk of exposure and disclosure. 

• With Canadian businesses and individuals relying on foreign platforms for cloud services, social media, and financial transactions, data breaches are more likely to occur. There are numerous examples of this happening globally. 

• Dependence on foreign tech giants can stifle competition and lead to higher costs for Canadian businesses that have few alternatives. When there are no homegrown solutions, businesses must conform to foreign pricing models and service limitations, reducing competitiveness. 

• Trade disputes or geopolitical tensions could result in restricted access to essential IT services. If foreign providers decide to cut services or impose restrictions due to conflicts beyond Canada’s control, businesses and individuals relying on these platforms could face major disruptions.

  
  

Some ideas for action:

• Avoid over-reliance on any single provider, especially those outside Canada. A diversified approach enhances resilience against external disruptions. 

• Support Canadian tech companies through funding, research opportunities, and favourable policies to build robust homegrown solutions. 

• Evaluate the backgrounds and affiliations of potential IT partners to ensure they align with Canada's security and privacy standards.

  
  

What did we miss? Do you agree? Is digital sovereignty an issue Canada needs to act on?

© 2025 Stormbreaker Response, All Rights Reserved.