“Businesses, researchers, and governments should not have to rely on foreign-controlled systems to advance their AI ambitions,” said Darren Entwistle, president and CEO of Telus.

It’s a simple idea. Keep data in Canada, right? The reality is that such simplicity has been elusive. 

For years, Canadian organizations eager to tap into AI’s potential have been forced to send their most valuable information across borders, data centres run by companies outside the country, in jurisdictions with their own interests and regulations. 

Uncomfortable questions, naturally, arise: Who truly owns the data? Who decides how it’s protected? And what happens when geopolitical tensions or foreign policies collide with domestic priorities?

That concern is not hypothetical. Cyber defense policy analyst Alexander Rudolph shared a story with us recently about Microsoft telling France’s Senate this year it would comply with U.S. legal requests for data even if the information is hosted in Europe. For Canadians, the implication is clear: data stored on U.S. platforms could be provided to Washington without Ottawa’s knowledge or consent.

That example underscores how questions of ownership and control are not abstract. They shape the risks Canadian organizations face when relying on foreign infrastructure. The result is a paradox: pushing innovation forward while giving up control of the very assets that underpin competitiveness.

This week, Telus made a big step toward digital independence with the launch of Canada’s first sovereign AI factory in Rimouski, Quebec. The facility will keep computing power and sensitive data inside the country. 

AI adoption is no longer just about tools and algorithms. It’s about where data lives, who controls it, and how organizations can build capabilities without adding risk. Even more, as Entwistle added, it’s about empowering our economy, and creating the conditions for Canadian companies to innovate on their own terms while contributing to national resilience.

The business case for AI sovereignty

AI is only as strong as the computing infrastructure behind it. 

For companies handling health records, financial transactions, or public infrastructure, hosting that work outside Canada adds legal, regulatory, and reputational risks. 

Sovereign AI infrastructure is designed to reduce those risks by keeping sensitive information under Canadian control.

Telus’ Rimouski facility gives organizations end-to-end capabilities: training new models, customizing existing ones, and deploying them into business operations. For leaders looking to decide how fast to move on AI, the question is now about cost and performance, as well as control and compliance.

Framing the project’s national significance, Minister of AI and Digital Innovation Evan Solomon said “expanding data and compute capacity here at home supports the government’s vision for AI-driven productivity and competitiveness.”

The conversation around digital sovereignty has shifted quickly, moving from a niche concern to a central issue in Canada’s innovation agenda.

“It was only a few years ago when people acted like it was quaint and unfashionable for Canadians to own and control their data, algorithms and cloud computing,” said Benjamin Bergen, President of the Council of Canadian Innovators, in a statement to Digital Journal. 

“It’s very good to see both the public sector and large enterprises embracing the need for sovereign cloud and AI systems.”

Signals from early adopters

Telus hasn’t launched its facility in a vacuum, either. Early partners point to how different sectors might benefit from sovereign AI infrastructure.

• Digital healthcare consumer experience provider League is building AI-powered health services on the platform. For patients, it could mean more personalized experiences. For providers, it means those experiences can be delivered while keeping sensitive health data inside the country.
  
• Accenture is developing solutions for highly regulated sectors including healthcare, public services, and financial services. These are industries where leaders want to accelerate AI but can’t afford missteps on compliance.
  
• OpenText will use the factory to support its Aviator AI platform, serving more than 1,600 Canadian clients. It’s a reminder that enterprise AI isn’t just about novelty, it’s about scaling secure systems that can actually be trusted.

Each example highlights a different angle of risk and progress. For healthcare leaders, the concern is privacy. For financial executives, regulation. For enterprise CIOs, stability. 

The takeaway: sovereignty is not an abstract national goal, it’s a practical business filter.

Connecting to Canada’s AI ecosystem

Canadian leaders in the AI field have long pointed out the lack of domestic infrastructure.

“Canadian AI research has always been world-leading, but access to truly sovereign, high-performance computing infrastructure has been a critical gap,” said Valerie Pisano, president and CEO of Mila – Quebec Artificial Intelligence Institute.

“This sovereign infrastructure enables us to translate Canadian AI innovations into real-world applications that benefit our economy and society”.

That point is critical for decision-makers. 

Sovereign infrastructure is critical for building the backbone for future competitiveness.

Canadian research becomes commercial results, which becomes global relevance.

Powering growth without environmental strain

If we can be blunt (and Captain Obvious), AI infrastructure has an energy problem. MIT Technology Review cites projections published by Lawrence Berkeley National Laboratory, finding that by 2028, more than half of the electricity going to U.S. data centres will be used for AI.

At the very moment organizations are under scrutiny for their environmental impact, data centres are gobbling up incredible amounts of electricity and water, and putting pressure on grids and ecosystems.

By contrast, Telus’ facility will be powered by 99% renewable energy, operates with three times greater efficiency than the industry average, and cuts water consumption by 75% through natural cooling.

For companies under pressure to hit net-zero targets or defend their ESG credentials, those details matter as much as the technology itself. 

Every new AI project now comes with two ledgers: one measuring competitive advantage, the other measuring environmental cost. The new AI factory is proof that sovereign infrastructure doesn’t have to come at the expense of sustainability. As the Telus announcement describes, “cutting-edge AI capabilities and environmental stewardship go hand in hand.”

What leaders should watch next

A sovereign AI factory is only the beginning. 

Telus has announced Kamloops, BC as the next site. Together, these facilities shape a cross-country foundation that could support everything from provincial healthcare systems to national-scale financial institutions.

For leaders shaping strategy, the questions to ask now are: Where does sovereignty create new opportunities in your sector? How can AI adoption accelerate without adding regulatory or reputational risk? And what would it mean for your industry to build trusted digital systems here, rather than renting them from elsewhere?

Final shots

• Sovereign AI is a leadership issue as much as a technology one.
• National infrastructure choices will influence how Canadian organizations compete globally.
• The Rimouski launch signals Canada’s intent to shift from research leader to systems builder.
• Sustainability will shape the credibility of every major AI investment going forward.