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Microsoft vows to protect ‘digital sovereignty’ in $7.5-billion Canadian data-centre expansion

Microsoft plans to enhance AI and cloud services with a $7.5 billion investment, supporting digital sovereignty and creating thousands of jobs, the company said.

  • On Tuesday, Microsoft Corp. said it will spend more than $7.5 billion in Canada over the next two years, with Brad Smith, president and vice-chair, meeting officials in Ottawa.
  • Policy pressure to strengthen digital sovereignty prompted Ottawa to seek more data centres, fueled by last year’s sovereign AI compute program launched by then-prime minister Justin Trudeau and Microsoft’s focus, Brad Smith said.
  • Microsoft will launch a Threat Intelligence Hub in Canada, expand Azure Canada Central and Canada East datacenters, and add GPUs to handle AI workloads while partnering with Canadian AI startup Cohere.
  • Local economic effects include thousands of construction, engineering and technology jobs and support for Canadian firms, while Microsoft has more than 5,300 employees across 11 cities in Canada.
  • Starting next year, Microsoft will process Copilot AI platform data inside Canada, add new capacity, and pursue legal and diplomatic avenues to protect services for customers.
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The Globe & Mail broke the news in Canada on Tuesday, December 9, 2025.
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