A US data security company is adding an internal locker that will store customer data in Canada.
As concerns over data sovereignty heat up, San Francisco-based data security company Okta has opened a new Canadian “data cell.”
Okta this built on mesh architecture, which separates its services into “isolated, non-shared, identical” copies of its infrastructure in its databases. The new full-service cell is located in Canada to ensure that customer identification data remains in the country and meets local privacy and compliance requirements, the company said.
“Canadian businesses are using AI to improve productivity and innovation, and they deserve a foundation built on trust and data persistence.”
Canadian support comes as conversations about data sovereignty heat up in the country. The Canadian government has dedicated almost $1 billion for construction sovereign cloudwhich, according to Artificial Intelligence (AI) Minister Evan Solomon, means Canadian data control “free from coercion.” Several companies, including telecommunications Bell, TelusAnd Hypertekposition themselves as a “Made in Canada” solution.
Many are concerned that foreign laws, including U.S. laws, CLOUD law and the Foreign Intelligence Surveillance Act (FISA) could allow law enforcement agencies in other countries to demand the transfer of data on Canadian residents. In the Canadian government official documentOfficials warned that the country would not have “full sovereignty” over the data of service providers subject to foreign laws. In this light, an Okta cell would not necessarily store information in Canada.
Canadian Sovereign Cloud Tutorial
While unpredictable US politics raise concerns about data sovereignty, Canadian politicians and companies are racing to make a Canadian cloud sovereignty a reality.
• Carney says new major projects office will help build 'Canadian sovereign cloud'
• Canada hopes to create a sovereign cloud to counter US dominance. It won't be easy
• Telus opens first Sovereign AI Factory in Rimovsky
• Mila partners with Hypertec and 5C to launch Sovereign AI Research Center in Montreal
• Canadian cloud providers team up to launch sovereign cloud offering for government
In October, Solomon said he did not rule out American partners as part of the Canadian sovereign cloud, provided they are not subject to foreign legal pressure.
Okta is an enterprise identity management service that allows IT teams to manage employee or AI agent access to any application or device. It provides features such as multi-factor authentication, single sign-on, and mobile identity management.
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With Okta's new cell, expected to launch in the first quarter of 2026, Canadian organizations will have access to its Enhanced Disaster Recovery offering, which is said to recover from service outages in five minutes or less. Okta also intends to expand its team in Canada and introduce French language support across all its products for Quebec and French-speaking users.
“Canadian businesses are using AI to improve productivity and innovation, and they deserve a foundation built on trust and data residency,” Dan Kagan, vice president of Okta Canada, said in a statement. “Our new data cell is an investment that will help them innovate securely and enable them to confidently transform their operations.”
Image courtesy of Okta via LinkedIn.
