UNDERSTANDING DATA SOVEREIGNTY

Data Residency

Geographic location where data is physically stored.

Example: Data stored in AWS Canada region (Montreal)
Physical location is Canada

Data Sovereignty

Legal jurisdiction governing data access and control.

Example: AWS is US company subject to US CLOUD Act
Legal jurisdiction is United States, even for data in Canada

The CLOUD Act

Clarifying Lawful Overseas Use of Data (CLOUD) Act allows US government to compel US companies to produce data, regardless of where data is stored globally.

The Problem:
Data residency in Canada doesn’t provide sovereignty if your provider is US-owned.

What this means:
AWS Canada region data accessible to US government
Microsoft Azure Canada data accessible to US government
Google Cloud Montreal data accessible to US government
Any US company, any datacenter location worldwide

Why it matters:
US law applies to Canadian data if stored with US provider
No notification to Canadian data subject when US government accesses
Potential conflict with Canadian privacy laws (PIPEDA)
Canadian legal protections don’t apply

Canadian Hosting Hierarchy

Tier 1 (Strongest Sovereignty)

  • Canadian-owned providers with Canadian datacenters
  • Web Hosting Canada
  • ThinkOn (sovereign cloud, government-certified)
  • Server Cloud Canada
  • CACloud
  • CanSpace Solutions

Tier 2 (Non-US Sovereignty)

  • Non-US providers with Canadian datacenters
  • OVHcloud Canada (French company, Canadian datacenter)
  • Provides Canadian residency and non-US sovereignty

Tier 3 (Residency Only)

  • US providers with Canadian datacenters
  • AWS Canada (Montreal region)
  • Microsoft Azure Canada
  • Google Cloud Montreal
  • Canadian residency, US legal jurisdiction (CLOUD Act applies)

Tier 4 (Neither Residency Nor Sovereignty)

  • US providers with US datacenters
  • AWS US regions
  • Microsoft Azure US regions
  • Google Cloud US regions

Stay Sovereign, Stay Safe

Let the experts at Orchard worry about where and how your data is hosted and protected while you tend to your business.

Whether it’s a sovereignty assessment, procuring a new service provider, dealing with data governance, bidding on a government contract or migrating to different cloud services, we’re here to help.