Ottawa is talking about building a sovereign cloud but what does that even mean?
By The Canadian Press
September 12, 2025
Prime Minister Mark Carney announces five major projects as part of his plan for Canada to navigate changing trade relationships in Edmonton on Thursday, Sept. 11, 2025.
THE CANADIAN PRESS/Amber Bracken
When Prime Minister Mark Carney revealed initial batch of projects Canada aims to fast-track, he mused about another endeavour that didn’t make the list: a sovereign cloud.
“This would build compute capacity and data centres that we need to underpin Canada’s competitiveness, to protect our security and to boost our independence and sovereignty,” Carney said Thursday.
“This will give Canada independent control over advanced computing power while reinforcing our leadership in artificial intelligence and quantum.”Latest updates on artificial intelligence news here
But what is a sovereign cloud? The Canadian Press asked Guillaume Beaumier, an assistant professor of political science and international studies at l’École nationale d’administration publique in Quebec, to break down the concept.
What is a sovereign cloud?
A sovereign cloud is a computing environment companies use to run services. They can be set up to comply with a specific country’s laws or core values.
Sovereign clouds can give users greater control over their data’s residency and privacy by allowing companies to decide where the information is kept, who can access it and what legal protections will safeguard it.
With a sovereign cloud, companies can ensure the data and infrastructure their services run on are confined to their own country, avoiding access from other nations, said Beaumier.
Why does Canada need a sovereign cloud?
Companies like Amazon and Microsoft have already started to develop sovereign clouds, Beaumier said.
“The issue with that is basically that since they are foreign companies, they remain subject to the laws of the United States,” said Beaumier.
The Cloud Act allows the U.S. government to ask American companies that have offices or infrastructure in other countries to hand over data they have abroad if it is needed for law enforcement.
This act and others could put Canadian data at risk, especially as the country is locked in a trade war with its southern neighbour.
“So the goal here from the current Canadian administration is to develop something that would be led by the government or by Canadian companies to avoid this risk,” Beaumier said.
What does it take to develop a sovereign cloud?
Lots of money.
Sovereign clouds are costly because they require a high number of chips and servers that can store and analyze data. They also require cooling systems that can keep them operating as they heat up, said Beaumier.
Last year, Amazon said it would invest the equivalent of about $12.7 billion in a sovereign cloud project in Europe.
In addition to money, powering sovereign clouds requires massive amounts of electricity.
Is Carney’s idea a good one?
Given the current trade war and increasing concerns about data privacy, Beaumier expects Carney to find a lot of support for a sovereign cloud.
However, he said that if the country ends up relying on one or a few Canadian companies for the cloud, it might develop a market that “lacks competition” and “we might not even get better services than before.”
“One issue with the current cloud market that we have is that it is highly concentrated. There are only a very few companies offering these services,” Beaumier said.
“(They) can then gain market power, basically, and they can try to extract more revenues from their users — either the governments or companies.”
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Tara Deschamps, The Canadian Press
This report by The Canadian Press was first published Sept. 12, 2025.
When Prime Minister Mark Carney revealed initial batch of projects Canada aims to fast-track, he mused about another endeavour that didn’t make the list: a sovereign cloud.
“This would build compute capacity and data centres that we need to underpin Canada’s competitiveness, to protect our security and to boost our independence and sovereignty,” Carney said Thursday.
“This will give Canada independent control over advanced computing power while reinforcing our leadership in artificial intelligence and quantum.”Latest updates on artificial intelligence news here
But what is a sovereign cloud? The Canadian Press asked Guillaume Beaumier, an assistant professor of political science and international studies at l’École nationale d’administration publique in Quebec, to break down the concept.
What is a sovereign cloud?
A sovereign cloud is a computing environment companies use to run services. They can be set up to comply with a specific country’s laws or core values.
Sovereign clouds can give users greater control over their data’s residency and privacy by allowing companies to decide where the information is kept, who can access it and what legal protections will safeguard it.
With a sovereign cloud, companies can ensure the data and infrastructure their services run on are confined to their own country, avoiding access from other nations, said Beaumier.
Why does Canada need a sovereign cloud?
Companies like Amazon and Microsoft have already started to develop sovereign clouds, Beaumier said.
“The issue with that is basically that since they are foreign companies, they remain subject to the laws of the United States,” said Beaumier.
The Cloud Act allows the U.S. government to ask American companies that have offices or infrastructure in other countries to hand over data they have abroad if it is needed for law enforcement.
This act and others could put Canadian data at risk, especially as the country is locked in a trade war with its southern neighbour.
“So the goal here from the current Canadian administration is to develop something that would be led by the government or by Canadian companies to avoid this risk,” Beaumier said.
What does it take to develop a sovereign cloud?
Lots of money.
Sovereign clouds are costly because they require a high number of chips and servers that can store and analyze data. They also require cooling systems that can keep them operating as they heat up, said Beaumier.
Last year, Amazon said it would invest the equivalent of about $12.7 billion in a sovereign cloud project in Europe.
In addition to money, powering sovereign clouds requires massive amounts of electricity.
Is Carney’s idea a good one?
Given the current trade war and increasing concerns about data privacy, Beaumier expects Carney to find a lot of support for a sovereign cloud.
However, he said that if the country ends up relying on one or a few Canadian companies for the cloud, it might develop a market that “lacks competition” and “we might not even get better services than before.”
“One issue with the current cloud market that we have is that it is highly concentrated. There are only a very few companies offering these services,” Beaumier said.
“(They) can then gain market power, basically, and they can try to extract more revenues from their users — either the governments or companies.”
---
Tara Deschamps, The Canadian Press
This report by The Canadian Press was first published Sept. 12, 2025.
Conservative Commentator James Moore: Carney’s ambitious ‘major projects’ is what Canada needs, but come with big risks
By James Moore
By James Moore
September 12, 2025
James Moore is a former federal cabinet minister under prime minister Stephen Harper, and a columnist for CTVNews.ca.
In Edmonton, Dawn Farrell, head of the new Major Projects Office (MPO) for the Government of Canada took to the podium to introduced Prime Minister Carney and summarized her mandate and the mission of the government thusly: “To get to one project, one review, one decision in a two-year timeline, (that) will set Canada apart globally and attract enormous inflows of capital.”
Yes, absolutely
James Moore is a former federal cabinet minister under prime minister Stephen Harper, and a columnist for CTVNews.ca.
In Edmonton, Dawn Farrell, head of the new Major Projects Office (MPO) for the Government of Canada took to the podium to introduced Prime Minister Carney and summarized her mandate and the mission of the government thusly: “To get to one project, one review, one decision in a two-year timeline, (that) will set Canada apart globally and attract enormous inflows of capital.”
Yes, absolutely
.
The head of the new federal government Major Projects Office Dawn Farrell speaks, as Prime Minister Mark Carney, looks on, during the announcement of five major projects in Edmonton on Thursday, Sept. 11, 2025. THE CANADIAN PRESS/Amber Bracken
This is the clear ambition that Canada has needed for a long time. No matter what partisan commitment one might have, for Canada’s sake, we should hope this process is a success.
It did occur to me, however, that if “one project, one review, one decision in a two-year timeline” makes sense for large scale projects, why not have the same ethos for medium projects or smaller projects, of which there are plenty?
Surely if large multijurisdictional projects that require sophisticated financing, aboriginal engagement, stakeholder collaboration, strategic procurement, environmental assessments and more can be driven to such efficiency, why stop at a select few “major” projects? Why not drive the same ambition through the whole of catalogue of infrastructure opportunities, and not just a tight list of five projects every few months? I am hopeful that this question will be asked in the coming session of Parliament at some point, but I digress.Carney’s first five major projects include LNG, span across the country
None of the five projects that were announced by the prime minister were new, but they are all excellent. As a British Columbian it is great to see the Government of Canada continue to champion the expansion of Canada’s liquified natural gas opportunity by backing phase two of the LNG Canada’s expansion in Kitimat.
This is the clear ambition that Canada has needed for a long time. No matter what partisan commitment one might have, for Canada’s sake, we should hope this process is a success.
It did occur to me, however, that if “one project, one review, one decision in a two-year timeline” makes sense for large scale projects, why not have the same ethos for medium projects or smaller projects, of which there are plenty?
Surely if large multijurisdictional projects that require sophisticated financing, aboriginal engagement, stakeholder collaboration, strategic procurement, environmental assessments and more can be driven to such efficiency, why stop at a select few “major” projects? Why not drive the same ambition through the whole of catalogue of infrastructure opportunities, and not just a tight list of five projects every few months? I am hopeful that this question will be asked in the coming session of Parliament at some point, but I digress.Carney’s first five major projects include LNG, span across the country
None of the five projects that were announced by the prime minister were new, but they are all excellent. As a British Columbian it is great to see the Government of Canada continue to champion the expansion of Canada’s liquified natural gas opportunity by backing phase two of the LNG Canada’s expansion in Kitimat.
The terminus for the Coastal GasLink natural gas pipeline is seen at the LNG Canada export terminal under construction in Kitimat, B.C., on Sept. 28, 2022. THE CANADIAN PRESS/Darryl Dyck
A final investment decision on the expansion is expected in 2026 by LNG Canada’s owners, and I have to think that with the federal government offering their full support to drive the regulatory process to a positive outcome, the proposal to double the terminal’s capacity to almost 30 million tonnes per year could be on a path for approval to Canada’s benefit.
The Darlington New Nuclear Project has been in development for years and is already under construction. The project has already been cleared for approval by the Canadian Nuclear Safety Commission and construction is already underway with a reported finishing date in 2029.
When the project is fully operational, “Canada (will be) the first G7 country to have an operational small modular reactor (SMR), accelerating the commercialization of the technology… for use across the country and worldwide,” according to the government. Great ambition again, but there are enormous regulatory challenges to make this a reality, and I am hopeful the MPO can realize this potential.
A final investment decision on the expansion is expected in 2026 by LNG Canada’s owners, and I have to think that with the federal government offering their full support to drive the regulatory process to a positive outcome, the proposal to double the terminal’s capacity to almost 30 million tonnes per year could be on a path for approval to Canada’s benefit.
The Darlington New Nuclear Project has been in development for years and is already under construction. The project has already been cleared for approval by the Canadian Nuclear Safety Commission and construction is already underway with a reported finishing date in 2029.
When the project is fully operational, “Canada (will be) the first G7 country to have an operational small modular reactor (SMR), accelerating the commercialization of the technology… for use across the country and worldwide,” according to the government. Great ambition again, but there are enormous regulatory challenges to make this a reality, and I am hopeful the MPO can realize this potential.
An architect's vision of the new container terminal in Contrecoeur is shown in a handout. THE CANADIAN PRESS / Handout photo
The prime minister also highlighted the Contrecoeur Terminal Container expansion project at the Port of Montreal, the McIlvenna Bay Foran Copper Mine Project in Saskatchewan, and the Red Chris Mine Expansion in Northwest B.C. Again, all job-creating projects with billions already committed from governments before this week’s announcement.
Carney also announced projects that may be added to the fast-track list soon, including expansion of the Port of Churchill, high-speed rail through the Toronto-Ottawa-Montreal-Quebec City corridor; the “Pathways Plus” carbon capture and storage project proposed by Alberta’s biggest oilsands companies; and critical-minerals projects in Ontario’s Ring of Fire.
This is all good stuff, but two observations:
First, no oil pipelines made the first list, and that is a problem that can’t remain unresolved.
While Premier Danielle Smith remains hopeful, there is a chicken and egg dance happening where the federal government consistently suggests that there is no proposal for a pipeline, so there isn’t anything to add to a list, but the door is open if this changes.
But that won’t change in the current regulatory environment imposed by the federal government. Proposals are needed, but they won’t ever be drawn up and presented because the federal government has made moving forward a wholly unattractive enterprise.
As long as current laws on emissions caps and tanker bans remain unchanged, I don’t imagine the “Major Project Office” will be burdened with assessing many (or any) pipeline proposals.
Impressive, but risky
So, the choice is: Be sincere about nation building and change the status quo and incent a pipeline proposal; or stay as-is and stymie the energy opportunity for Canada by expanding our global market access to create wealth for Canadians.
Second, Prime Minister Carney’s decision to align himself with the fate of these individual projects – with all their complexities – is impressive leadership, and incredibly risky politics at the same time.
In his hour-long press conference, the prime minister went into significant detail on each of these projects and other prospective projects, demonstrating that he is as advertised: A substantive policy analyst who does his homework and cares about the details. This is good but comes with downside risk.
The MPO could well be announcing 20 to 30 projects for approval by next summer, and the idea that they will all be without controversy is a fantasy.
Projects of the magnitude that have been announced and those that will be announced in the future will, without question, at some point, have cost overruns, procurement controversies, delays, local opposition, shaky value propositions, questionable governance, perhaps legal challenges and more.
This will not be all smooth sailing, great photo-ops, peace and prosperity. This will get tough at times.
So, for the prime minister to take personal ownership of these projects as a direct proxy for the success or failure of his leadership is truly leading from the front and admirable.
Time will tell whether it will prove to be politically foolhardy or if this exercise will be as transformative and as nation-building as it is being advertised to be.
Day 1 was a good start, but tougher days lay ahead.
The prime minister also highlighted the Contrecoeur Terminal Container expansion project at the Port of Montreal, the McIlvenna Bay Foran Copper Mine Project in Saskatchewan, and the Red Chris Mine Expansion in Northwest B.C. Again, all job-creating projects with billions already committed from governments before this week’s announcement.
Carney also announced projects that may be added to the fast-track list soon, including expansion of the Port of Churchill, high-speed rail through the Toronto-Ottawa-Montreal-Quebec City corridor; the “Pathways Plus” carbon capture and storage project proposed by Alberta’s biggest oilsands companies; and critical-minerals projects in Ontario’s Ring of Fire.
This is all good stuff, but two observations:
First, no oil pipelines made the first list, and that is a problem that can’t remain unresolved.
While Premier Danielle Smith remains hopeful, there is a chicken and egg dance happening where the federal government consistently suggests that there is no proposal for a pipeline, so there isn’t anything to add to a list, but the door is open if this changes.
But that won’t change in the current regulatory environment imposed by the federal government. Proposals are needed, but they won’t ever be drawn up and presented because the federal government has made moving forward a wholly unattractive enterprise.
As long as current laws on emissions caps and tanker bans remain unchanged, I don’t imagine the “Major Project Office” will be burdened with assessing many (or any) pipeline proposals.
Impressive, but risky
So, the choice is: Be sincere about nation building and change the status quo and incent a pipeline proposal; or stay as-is and stymie the energy opportunity for Canada by expanding our global market access to create wealth for Canadians.
Second, Prime Minister Carney’s decision to align himself with the fate of these individual projects – with all their complexities – is impressive leadership, and incredibly risky politics at the same time.
In his hour-long press conference, the prime minister went into significant detail on each of these projects and other prospective projects, demonstrating that he is as advertised: A substantive policy analyst who does his homework and cares about the details. This is good but comes with downside risk.
The MPO could well be announcing 20 to 30 projects for approval by next summer, and the idea that they will all be without controversy is a fantasy.
Projects of the magnitude that have been announced and those that will be announced in the future will, without question, at some point, have cost overruns, procurement controversies, delays, local opposition, shaky value propositions, questionable governance, perhaps legal challenges and more.
This will not be all smooth sailing, great photo-ops, peace and prosperity. This will get tough at times.
So, for the prime minister to take personal ownership of these projects as a direct proxy for the success or failure of his leadership is truly leading from the front and admirable.
Time will tell whether it will prove to be politically foolhardy or if this exercise will be as transformative and as nation-building as it is being advertised to be.
Day 1 was a good start, but tougher days lay ahead.
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