“In the digital space, sovereignty isn’t determined by where your data centres are located, but by which company runs the servers that make up the cloud,”

By Gazette Staff

December 16th, 2025

BURLINGTON, ON

The academics make huge contributions to the shaping of public policy; Brock University has been doing this for years.

Microsoft’s recent announcement of its plan to invest $7.5 billion in Canada’s artificial intelligence (AI) infrastructure over the next two years placed a strong emphasis on protecting the country’s digital sovereignty by ensuring that data is stored locally.

But for Brock University data governance expert Blayne Haggart, this claim relies on a broad misconception of what digital sovereignty looks like.

Microsoft admitted that they have to follow U.S. law under the Cloud Act, which gives the U.S. the authority to obtain digital data held by U.S.-based tech companies.

“In the digital space, sovereignty isn’t determined by where your data centres are located, but by which company runs the servers that make up the cloud,” says the Professor of Political Science. “Microsoft admitted in a June hearing before the French Senate that they have to follow U.S. law under the Cloud Act, which gives the U.S. the authority to obtain digital data held by U.S.-based tech companies, no matter where in the world this data is stored. Securing digital sovereignty is a promise the company can’t deliver.”

Though any government demands for data could be fought in U.S. court, Haggart says this is no assurance of protection.

“Even if Microsoft were to fight an honest court battle, they could lose and data would be vulnerable,” he says. “But the U.S. government can also threaten or exert pressure to make companies give up this data, as was the case with the National Security Agency’s secret surveillance later made public by Edward Snowden.”

We cannot rely on an American technology company’s “promise not to peek” at sensitive research, policy and proprietary data.

Haggart says all Canadians, from individual citizens and those working in the private sector to universities and governments, need to be aware they cannot rely on an American technology company’s “promise not to peek” at sensitive research, policy and proprietary data.

Instead, he suggests Canadians seek out or develop technology alternatives to reduce dependency on U.S. software companies.

While he acknowledges that it might be a difficult process, he believes investing in the development of homegrown technology and diversifying technology products would be a sensible use of government spending to ensure a nationally secure digital infrastructure.

Haggart: “Network capacity that is more independent from the U.S.  This would be a huge challenge, but it’s not impossible.”

“We need to start developing in-house expertise and in-house systems that can replicate the functionality of what we get from Microsoft or Google and working with other companies, particularly in Europe, to build out digital services and network capacity that is more independent from the U.S. to create a true alternative,” he says. “This would be a huge challenge, but it’s not impossible.”

Overall, Haggart says Canadians need to understand what is at stake and how their data might be used or accessed as U.S. technology companies ramp up efforts to increase adoption of AI around the world.

“We need to have a more mature discussion about what sovereignty actually means in the digital age, and basically it comes down to control,” he says. “If you don’t control the software, you don’t control the data.”

Haggart notes the need to improve understandings of digital regulatory policies and tech regulation is a key focus of an upcoming Digital Regulation in the Public Interest symposium taking place at Brock University in March.

“The symposium is designed to bring together emerging and established scholars to discuss issues of digital regulation, which are becoming more and more salient, including regarding questions of digital sovereignty,” he says. “There’s a greater need for policy-makers and for all Canadians to understand them as important policy areas.”