Canada invests $2 billion in AI

In recent weeks, Ottawa has clarified its vision for a more autonomous and resilient digital future. Between its digital sovereignty strategy, the major investments outlined in the 2025 federal budget, and the creation of a dedicated AI Task Force, Canada has set out to regain control over its data, its infrastructure, and its capacity for innovation. 

Who can access Canadian data?

Digital sovereignty is, above all, a question of power. The power to decide where data is stored, who can access it, and on which infrastructures it circulates. Canada wants to ensure that its critical systems (think healthcare, security, and communications) are no longer entirely dependent on international players.

But the reality is more complex. Hosting data in Canada does not guarantee full control. Laws like the U.S. Cloud Act still allow American authorities to access data held by U.S.-based companies, even when that data is stored here. Since 2021, the Canadian government has spent more than $1.3 billion on American cloud services for essential applications.

Even when a service is “Canadian,” it can still rely on foreign components, chips manufactured abroad, global supply chains, or software tools governed by other jurisdictions. This is what makes achieving full digital sovereignty so difficult.

AI as a driver of independence

The 2025 federal budget aligns with this vision. The government is turning the principles of sovereignty into concrete actions, betting on artificial intelligence as a strategic pillar.

With a strong fiscal position, Ottawa is investing up to $2 billion to build a robust national digital infrastructure. Of that amount, $700 million will support private data centers in Canada, $1 billion will strengthen public supercomputers and secure infrastructures, and $300 million will help SMEs gain better access to local AI computing power.

In this context, Cohere, a Toronto-based generative AI company, will receive $240 million to establish a data center in Canada. This kind of investment aims to reduce technological dependency and stimulate a local innovation ecosystem capable of competing with global giants.

Une stratégie nationale en construction

The final piece of the federal initiative will be the rollout of a broader national artificial intelligence strategy. To this end, Canada established the AI Strategy Task Force in September 2025, a group of AI specialists including researchers, industry leaders, and civil-society representatives.

Their mandate is ambitious: to define a long-term vision for responsible AI development, guide investments, strengthen infrastructure, train the workforce, and position Canada within the global race.

Innover en local

This legislative effort marks a shift in posture for Canada, which seeks to reclaim ownership of its tools, its data, and its technological future. By investing in its own infrastructures and in artificial intelligence, the country aims to build an economy capable of creating, hosting, and protecting its innovations at home.

But digital sovereignty also concerns every organization, every IT team, and every professional choosing their vendors, platforms, and practices. Companies must build the habit of designing, integrating, and modernizing solutions built for the Canadian context, ensuring performance, security, and technological independence.