**Canada Faces New Sovereignty Challenge in Digital Infrastructure**

Canadians are at a critical juncture regarding their sovereignty, similar to pivotal moments faced by previous generations. For great-grandparents, it was the railway; for grandparents, pipelines; and for parents, telecommunications. Each era highlighted how control over infrastructure equated to control over the nation. Today, the focus has shifted to less visible forms of infrastructure: cloud computing, artificial intelligence, and programmable money. Unlike the Canadian Pacific Railway or the TransCanada pipeline, these digital infrastructures do not appear on maps. However, their governance is crucial to Canada’s future.

Historically, Sir John A. Macdonald recognized that the transcontinental railway was not merely a transportation project but a means to secure Canada’s sovereignty. Without this east-west connection, the Prairies risked falling under American influence. Today, cloud infrastructure serves a similar purpose, acting as a backbone for the nation. When Canadian government operations rely on American companies like Amazon and Microsoft, they tie their future to U.S. interests rather than Canadian sovereignty. The U.S. CLOUD Act allows American courts to access Canadian data stored on American servers, even if those servers are located in Canada.

The historical context is significant. The 1956 pipeline debate illustrated how the ownership and routing of energy resources could determine whether Canada’s energy future was controlled from within or influenced by foreign powers. Today, the stakes are just as high with digital infrastructure. The recent acquisition of WonderFi by Robinhood shifted Canada’s financial infrastructure to foreign ownership with little public concern. Outsourcing federal computing to American tech giants means that Canadian data and decision-making processes are increasingly influenced by foreign entities.

The question remains: who controls the infrastructure that shapes Canada’s future? A similar sovereignty test occurred in 1959 when the Avro Arrow project, aimed at establishing Canada as a leader in aerospace, was abruptly canceled due to U.S. pressure. This decision not only halted an aircraft project but also resulted in a significant loss of technological sovereignty and future opportunities. Today, Canada’s dependence on American artificial intelligence and cloud systems poses a similar risk. The nation trains its brightest minds and develops advanced technologies, only to see them absorbed by foreign corporations.

In contrast, during the 1970s, Prime Minister Pierre Trudeau’s government took a proactive stance on Canadian broadcasting, recognizing the need to protect it from American media dominance. The Canadian Radio-television and Telecommunications Commission (CRTC) implemented rules to ensure Canadian content and ownership, reinforcing cultural sovereignty. However, there is currently no equivalent regulatory body for cloud services. There is no authority to demand transparency from AI systems or enforce Canadian laws on platforms that influence democracy.

The absence of a regulatory framework for digital infrastructure raises concerns about Canada’s sovereignty. A Microsoft executive recently stated that U.S. law supersedes foreign privacy protections, even for cloud servers located in Europe. This assertion highlights the potential for American jurisdiction to dominate Canadian law under similar circumstances. As Canada navigates this new digital landscape, the need for a robust framework to protect its sovereignty has never been more urgent. Without it, the risk of losing control over critical infrastructure looms large, echoing the lessons of the past.