Microsoft to invest heavily in Canada over next two years
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Microsoft Corporation announced on Tuesday that it plans to increase its total artificial intelligence investments in Canada to 19 billion Canadian dollars ($13.7 billion) over the period from 2023 to 2027, which includes an investment of over 7.5 billion Canadian dollars in the next two years.
The tech giant revealed that it plans to build new digital and AI infrastructure, which is scheduled to come online in the second half of 2026. The company also unveiled a five-point plan to boost Canada’s digital sovereignty.
“Our investment expands our Azure Canada Central and Canada East datacentre regions, delivering sustainable, secure, and scalable cloud and AI capabilities. These datacentres will power everything from modernized public services to advanced AI innovation – responsibly and within Canadian borders,” the company said on its blog.
The company’s president and vice-chair Brad Smith was in Ottawa Tuesday to meet with government officials and employees as part of the announcement. The funds will be used for Microsoft’s operational expenses along with capital spending to expand its data centres in Canada, including adding graphics processing units (GPUs) to handle AI workloads. Mr. Smith wrote in a blog post Tuesday that Microsoft has allotted $19-billion to Canada between 2023 and 2027.
In an interview Monday, Mr. Smith was eager to emphasize Microsoft’s commitment to digital sovereignty, which broadly refers to the control a country can exercise over its data and the infrastructure powering AI and cloud computing.
“Digital sovereignty has become a more important issue around the world,” he said. “What we’re seeing in Canada is two very distinct things. One is the change in the dialogue with the United States. The other is the increase in activity from around the world that’s targeting Canada.”
The fraught relationship with the U.S. under President Donald Trump is forcing Canadian companies and governments to reassess their reliance on American tech giants, including Microsoft, for crucial digital services. Cyberthreats targeting Canadian entities are also boosting the need for stronger cybersecurity measures, according to Mr. Smith.
Digital sovereignty is a thorny challenge for the federal government. Ottawa wants more data centres built in Canada to support growing AI usage and to foster homegrown alternatives to the dominance of U.S. tech giants, which also include Google, Amazon Web Services and Oracle, to lessen geopolitical vulnerabilities and capture more economic benefits. Of particular concern is the ability of U.S. courts to request data from the subsidiaries of American companies, even if the data is stored within Canada.
