Canadian organizations can choose where their data is stored. Choosing where it gets processed is much harder. A file can rest on Canadian ground and still be handled by a foreign GPU, and at that moment another country's law can reach it.
The federal government now sets the same bar. Its definition of sovereign compute is a Canadian‑located, Canadian‑governed system where data residency, operational control and decision‑making authority all remain in Canada. Meeting it takes physical capacity on Canadian ground, and not enough of it exists yet.