U.S. big tech holds 85% of Canadian cloud market, report says ahead of AI strategy
The report says the firms’ dominance could slow competition and deepen Canada’s reliance on foreign compute providers as Ottawa prepares its AI strategy.
- On Tuesday, a new report from the Canadian Anti-Monopoly Project revealed that Amazon, Microsoft, and Google control 85% of Canada's public cloud market, describing cloud computing as "core infrastructure."
- Dependence on U.S. "hyperscalers" creates sovereign risk and a competition problem, as the report warns that reliance on foreign providers complicates Canada's efforts to develop sovereign AI capabilities.
- Curtis McCord, policy analyst at the Canadian Anti-Monopoly Project, argues simply adding domestic "sovereign" providers fails to address high switching costs; he urges interoperability standards to reduce provider lock-in.
- Artificial Intelligence Minister Evan Solomon announced on Monday that the federal government will provide $66 million to build three data centres in B.C. supporting sovereign compute infrastructure.
- University of Waterloo economics professor Joel Blit warns that concentrated control over cloud computing could restrict AI access, stating, "Anytime that we have very high concentration in any industry, we should be worried about whether those companies can exercise market power.
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Reducing dependence on these American giants would be part of the AI strategy that Ottawa will unveil this week.
Three major U.S. technology companies control the vast majority of publicly available cloud infrastructure in Canada, according to a new report released upstream of the government's national artificial intelligence (AI) strategy, which should include measures to ensure digital sovereignty.
US big tech holds 85 per cent of Canadian cloud market, report says ahead of AI strategy
Three big US tech companies control the vast majority of Canada’s publicly-available cloud infrastructure, says a new report released ahead of the government’s national AI strategy, which is expected to include measures targeting AI sovereignty.
The Toronto Star
U.S. big tech holds 85% of Canadian cloud market, report says ahead of AI strategy
In Canada, Amazon has a 42 per cent share of the cloud market, Microsoft holds 31 per cent, and Google has 12 per cent, according to the report.
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