Canada's data centre boom raises strategic value and security concerns
A CSIS assessment warns that Canada's expanding data centre sector, vital for AI and cloud services, faces heightened cyber, supply-chain and foreign-ownership risks.
According to a partly redacted CSIS assessment dated May 27, Canada's data centres are set to grow in strategic importance as AI, cloud computing and digital services expand. The report highlights that these facilities safeguard sensitive data, uphold data sovereignty and underpin economic stability, thanks to the country's cool climate and renewable energy. However, it warns of a broad risk spectrum, including cyber attacks, physical threats, supply-chain gaps for components like transformers, and foreign ownership that could be coerced by adversarial states.
Recent incidents such as Iranian attacks on UAE data centres and a Russian strike on a Kyiv centre illustrate the physical danger. Alberta officials, including Technology and Innovation Minister Nate Glubish, and federal AI minister Evan Solomon, emphasize building sovereign infrastructure, while experts like Natasha Tusikov caution that domestic capacity to host large-scale data remains limited.
Why it matters
Canada's growing data centre industry is essential for digital growth but could become a security weak point if risks aren't managed.
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