Simply put, data sovereignty means that data is governed by the laws of the country where it’s stored. For Canadian organizations, this means ensuring that sensitive information not only stays within Canada’s borders but is also managed by Canadian companies, and remains protected by Canadian laws — not by foreign jurisdictions with very different rules.

Here’s how to keep your Canadian data Canadian in 2025.

Why now? The growing pressure to keep data in Canada

“When we talk about sovereignty, it’s not just about technology, it’s about responsibility and control over your data.”

Several trends are pushing Canadian organizations to take sovereignty seriously in 2025:

• Stronger privacy laws. Federal and provincial governments are tightening rules on data protection, especially for health, financial, and government data.
  
• Foreign laws like the U.S. CLOUD Act. Even if data is physically stored in Canada, U.S.-based cloud providers may be required to hand over data to American authorities under their jurisdiction.
  
• Public trust and reputation. Customers, partners, and regulators expect organizations to handle sensitive data responsibly and transparently.

All this means that if you haven’t considered data sovereignty within your organisation yet, the time to do so is now.

The impact of the CLOUD Act on Canadian organizations

One of the most significant sovereignty risks comes from U.S. legislation, particularly the CLOUD Act (Clarifying Lawful Overseas Use of Data Act).

Here’s what Canadian organisations need to know about the CLOUD Act:

• The CLOUD Act allows U.S. authorities to demand access to data from American companies, even if that data is stored on servers located outside the U.S.
  
• This creates potential exposure for Canadian organizations using major U.S. hyperscalers like AWS, Microsoft Azure, or Google Cloud.
  
• For sectors like healthcare, finance, public administration, and critical infrastructure, this exposure can create legal, compliance, and reputational risks.

Basically, even if your data is stored in Canada, it may not be fully secure if you’re using a U.S. cloud provider.

Which means it’s time to look within Canada for cloud solutions.

Edwin: A fully Canadian cloud for sensitive data

That’s where solutions like Edwin come in — R2i’s 100% Canadian cloud, fully customized and managed by a Canadian team.

• 100% Canadian data residency. All data is stored exclusively within Canada.
  
• Canadian ownership and management. No foreign legal exposure.
  
• Meets the highest security standards. Designed for industries with strict compliance needs.
  
• Flexible and scalable. Supports public, private, and hybrid cloud deployments.

“We offer Canadian organizations a real alternative that gives them peace of mind while still delivering all the benefits of the cloud.”

If you’re considering switching to a Canadian cloud, learn more about Edwin’s sovereign cloud offering here.

A strategic approach: Sovereignty as part of your cloud plan

“Data sovereignty isn’t something you deal with after the fact. It needs to be integrated from the start as a key part of your cloud strategy.”

At R2i, we encourage organizations to carefully assess the questions below before kicking off a cloud strategy.

• What types of data you are managing (e.g., customer data, personal health information, financial records, government data).
  
• Where that data is stored and processed.
  
• Who controls the infrastructure and under which jurisdiction they operate.
  
• Your long-term business risks related to vendor lock-in or legal exposure.

In many cases, a hybrid cloud or multi-cloud approach — combining both sovereign and public cloud resources — offers the flexibility organizations need while ensuring sensitive data stays protected.

Why sovereignty matters more than ever

In 2025, Canadian organizations face growing complexity when it comes to cloud adoption:

• Rapid digital transformation is increasing data volumes and security risks.
  
• AI and advanced analytics create new compliance considerations.
  
• Cybersecurity threats are becoming more sophisticated.
  
• Customers expect transparency about how their data is handled.

Data sovereignty isn’t just a legal or IT issue — it’s a business issue that touches security, compliance, reputation, and long-term competitiveness. It’s an issue that your organisation cannot afford to ignore.

Need help building a cloud strategy that keeps your data sovereign?

To discuss your unique cloud strategy further, contact the R2i team.