Data Sovereignty Crisis: Why Foreign Control of Digital Infrastructure Threatens Democratic Trust

Democratic governments promise data protection while operating on foreign platforms subject to U.S. law, creating massive trust debt that undermines sovereignty.

TL;DR: Canada’s digital infrastructure is largely under foreign control, meaning citizens’ data is often governed by U.S. laws rather than Canadian ones. This “digital vassalage” creates a massive Sovereignty Trust Debt, a gap between the promise of data protection and the reality of foreign jurisdiction. Historical parallels to treaty ports show how losing control over critical infrastructure erodes sovereignty. Under Trust Value Management, this misalignment generates trust friction that slows adoption, damages credibility, and inflates operational costs. Achieving true data sovereignty requires honest audits, phased migration to domestic systems, investment in local capacity, and embedding sovereignty standards into law; restoring both control and trust.

The Hollow Promise of Digital Trust

Every morning, millions of Canadians wake up, check their phones, access government services online, and conduct business through digital platforms. They do so with an implicit trust that their dat…