There’s no doubt about it – the Canadian market is teeming with opportunities for growth-minded domestic and international enterprises, artificial intelligence (AI) startups and service providers of all types.
The trick to taking full advantage of these opportunities? Complying with Canada’s data privacy, protection and sovereignty requirements. In this blog, we’ll look at just some of the foundational pieces of legislation that will influence your operations in Canada and how partnering with a provider of colocation and connectivity space can set you up for long-term success.
Understanding Data Privacy and Sovereignty Regulations
Several pieces of legislation collectively regulate how personal data is handled, stored and transferred, specifically ensuring that Canadian data remains within this country and is subject to Canadian laws.
Canadian Laws Affecting Data Privacy
First up is the Personal Information Protection and Electronic Documents Act (PIPEDA). This is the primary federal law governing data protection and privacy in Canada and applies to private sector and non-profit organizations that collect, use or disclose personal information during commercial activities. It also applies to federally regulated organizations that conduct business in Canada, such as airports, airlines, banks, international banks, telecommunications companies and radio and television broadcasters. Though there are some situations in which PIPEDA might not apply to your business, in general, it’s a sweeping law.
Businesses operating in provinces like British Columbia, Alberta and Quebec are generally exempt from PIPEDA, but only because existing private-sector privacy laws are quite similar to it. BC’s Personal Information and Protection Act (PIPA) applies to all private sector organizations in the province except government agencies or federally regulated organizations. Like PIPEDA, PIPA requires organizations to obtain an individual’s consent to collect, use or disclose information, have personal information policies that are clear and readily available and protect sensitive data from unauthorized access, breaches or theft. In the past few years, the landscape has trended towards even stricter data privacy laws.
In 2022, Bill C-27, an amendment to some areas of PIPEDA, introduced more stringent measures for handling personal data. It helped usher in the Consumer Privacy Protection Act (CPPA), the Personal Information and Data Protection Tribunal Act (PIDPTA) and the Artificial Intelligence and Data Act (AIDA). All are designed to protect the information of Canadians and ensure that emerging technologies are leveraged ethically and safely.
The Complexity of Data Sovereignty Compliance
No matter what laws are in place, however, the issue of cross-border data transfers and data sovereignty is a recurring, complex challenge to navigate for those doing business in Canada. When it comes to data sovereignty, there is no single law that applies. Rather, multiple legislative frameworks apply, especially those discussed above. The overarching principle is that data collected and stored in Canada must adhere to Canadian privacy legislation, including acts like PIPEDA, even if businesses are relying on cloud services from international providers like Amazon and Microsoft. The Canadian Directive on Digital Service notes that the optimal way to do this is to keep computing facilities within the border.
That said, for international organizations entering the Canadian market or domestic organizations doing cross-border business, satisfying data sovereignty requirements is a complicated endeavor. Even if data is physically stored within Canada, if it leaves our borders, it could be subject to the laws of other countries, like the US CLOUD Act. That’s why many cloud service providers seek colocation and connectivity locations within Canada, either in their own facilities or with third-party providers. Even though the regulatory conversation around data sovereignty is far from over, carriers, cloud providers, enterprises, AI startups and a host of other organizations require robust data governance and localization frameworks that protect personal information while enabling innovation and growth. Complying with data sovereignty requirements can be a time-intensive and costly mission to embark on alone. Fortunately, there is an optimal solution.
The Role of Partnerships in a Privacy-Conscious Market
Complying with Canadian laws is more than just an operational exercise – it’s paramount to winning the trust of Canadian customers and business partners. But finding ready-to-go space for your IT infrastructure is becoming quite challenging in increasingly competitive North American markets. That’s where we at Spencer Building can come in. As part of the Harbour Centre complex, we have immediately available colocation and connectivity space that you can use to support your efforts to comply with Canadian privacy laws and data residency and sovereignty requirements. With seamless, direct access to Harbour Centre’s existing Meet-Me-Rooms, you’ll also enjoy a thriving, long-established connectivity ecosystem, helping you forge the immediate partnerships you need to drive your growth.
Add our facility to your data sovereignty and privacy compliance plans and enjoy the strategic geography of Vancouver, British Columbia – a gateway to the United States and APAC region. With 24/7 monitoring, you can be sure your mission-critical, sensitive data is always protected. That’s the peace of mind you need to focus on turning your business goals into reality. Contact us today with your questions – we’re ready to help.
