Skip to content

Canada's Business and Tech Newsroom

  • Professional Subscription
  • Partnerships & Advertising
  • Licensing & Syndication
Log In Subscribe
Welcome,
  • My Account
  • Log Out
  • Business
  • Tech
  • National
  • The Big Read
  • Briefings
  • Commentary
Search
Log In Subscribe
Welcome,
  • My Account
  • Log Out
News

Buy Canadian rules will extend to tech and AI infrastructure, Solomon says

TORONTO — The Liberal government plans to expand its new stricter Buy Canadian policy to digital infrastructure, and is considering mandating that firms receiving federal funding use Canadian-made technology where possible, AI Minister Evan Solomon has said.

News

Buy Canadian rules will extend to tech and AI infrastructure, Solomon says

Ottawa is considering requiring organizations receiving federal funding to purchase from domestic suppliers, just as it’s doing with steel and aluminum for battery plants

By Murad Hemmadi
AI Minister Evan Solomon at The Logic Summit in downtown Toronto on Nov. 3, 2025. Ottawa currently houses and processes its own data in both legacy data centres and with the cloud arms of tech giants like Google, Microsoft and Oracle. Photo: Laura Proctor for The Logic
Nov 10, 2025
A A
A Small A Medium A Large
Share

Gift

Share

TORONTO — The Liberal government plans to expand its new stricter Buy Canadian policy to digital infrastructure, and is considering mandating that firms receiving federal funding use Canadian-made technology where possible, AI Minister Evan Solomon has said.

The forthcoming update to the national AI strategy will include “a Buy Canadian element,” Solomon added. He was speaking to reporters in Toronto on Monday, following two events at which he touted budget measures designed to help federal departments spend more with homegrown suppliers.

Talking Points

  • The federal government plans to expand its new, stricter policy of purchasing domestic steel and lumber for its own needs to compute capacity, AI Minister Evan Solomon said
  • Industry Minister Mélanie Joly has said she’s added requirements to federal financing agreements with battery plants that they use Canadian steel and aluminium. Solomon said Ottawa is considering similar provisions for domestic AI and technology products for companies receiving public funding.

Ottawa has long had a softer policy that officials should try their best to buy Canadian. In September, Prime Minister Mark Carney announced stricter rules, requiring federal departments and agencies to purchase from domestic suppliers first, and if they can’t find any, to make foreign firms use local content. 

Right now, the policy currently covers steel and lumber for defence and construction projects above an as-yet unspecified value. The requirement “will apply eventually to digital infrastructure,” Solomon said.

Related Articles

Evan Solomon speaks in front of a blurred multi-coloured background

Budget reveals how Ottawa plans to make data-centre deals

By Murad Hemmadi

AI adoption is just as important as AI sovereignty, Solomon says

By David Reevely

Ottawa currently houses and processes its own data in both legacy data centres and with the cloud arms of tech giants like Google, Microsoft and Oracle. Those ties may be hard to break. As The Logic reported, the innovation department estimated that switching its own compute usage away from Amazon Web Services would take up to three years, with other hyperscalers the only likely alternative.

Still, some Canadian firms are opening new data centres or partnering up to offer what they say is sovereign AI infrastructure. 

The Liberal government has also promised to extend its Buy Canadian requirement to companies and other organizations that receive federal grants, loans and other forms of public funding. 

In September, Industry Minister Mélanie Joly told The Logic she had stipulated that Volkswagen’s battery plant in St. Thomas, Ont., use Canadian steel and aluminium as a condition of federal support. The German automaker is in line for up to $13 billion in production subsidies.

Solomon said Ottawa could impose similar requirements on firms receiving public funding to buy Canadian if they’re spending any of the money on AI and digital products. Members of the AI task force appointed to provide advice on the refreshed AI strategy have recommended such a measure, he said. 

Solomon said that buying Canadian did not mean “isolation,” adding that firms can use technology and innovations from around the world that meet security and encryption standards. 

Last week’s federal budget included $105.9 million in fixed-term funding for the procurement department and Treasury Board Secretariat to implement the new domestic purchasing policy. It also allocated $79.9 million over five years to the innovation department to launch a procurement program for small and medium-sized businesses. And it committed to a new Office of Digital Transformation to help find opportunities for the public service to adopt new technologies, including AI. 

Ottawa’s previous attempts to buy more from startups and innovative companies have seen limited success; it shrank the last such program after departments consistently failed to meet their spending obligations. 

The budget also gave Solomon a mandate to negotiate deals with firms building and financing digital infrastructure. On Monday, he reiterated that the government has been sent a lot of data-centre proposals. “We’ve calibrated Canada’s own sovereign compute needs,” he said. “So we’re not here to be backstopping everybody.”

Gift the full article

Still, the federal government plans to incentivize the building of enough data centres to satisfy the compute and cloud usage of its departments and agencies. That could include offtake agreements or backstops, Solomon said. Under the former, Ottawa would purchase a certain amount of processing power; under the latter, it could guarantee financing for projects. 

“We want to make sure that we’re building our economy in the future with Canadian products and Canadian companies,” he said.

#artificial intelligence #data centres #Evan Solomon #federal budget 2025 #procurement #Tech

Sponsored Content

The road to risk-smart regulation

By Deborah Aarts

Why cybersecurity needs to match pace with AI

By Jessica Aftimus Rosa

How to shift your workforce from AI experimentation to adoption

By Jessica Aftimus Rosa
Paid promotional content

Loading...

Thanks for sharing!

You have shared 5 articles this month and reached the maximum amount of shares available.

Close
This account has reached its share limit.

If you would like to purchase a sharing license please contact The Logic support at [email protected].

Close
Want to share this article?

Upgrade to all-access now

Close
Gift the full article!

You have gifted 0 article(s) this month and have 5 remaining.

Copy link and gift
Copy Link
Email to a friend
Send Email
Gift on Social Media

Recipients will be able to read the full text of the article after submitting their email address. They will not have access to other articles or subscriber benefits.

Photo: Laura Proctor for The Logic

Most Popular This Week

A side shot of Annie Andrews passing a cluster of supporters with a hand outstretched and a joyful look on her face.
News

What the Democrats’ midterm sweep means for Canadian business

By Joanna Smith
An image of Prime Minister Mark Carney, standing in front of a microphone and speaking. He is wearing a blue suit and tie, while looking away from the camera. He is standing in front of a dark background. The Cohere logo is visible in the background.
News

Conservatives challenge Ottawa to justify its $1.6B Cohere investment

By Catherine McIntyre
U.S. President Donald Trump and Canadian Prime Minister Mark Carney in suits, sitting and talking in the Oval Office with gold decor.
News

Canadians have given up on the old America. They feel fine about it

By David Reevely
A logo that reads AI in blue lettering against a light yellow background.
News

BDC launches programs to test Canadian AI tools in small businesses

By Catherine McIntyre

In-depth, agenda-setting reporting

Great journalism delivered straight to your inbox.

A new condo construction site is seen in downtown Toronto on Thursday, May 25, 2023.
News

Big banks and developers urge Ottawa to halt private capital’s retreat from housing

By Chaimae Chouiekh

Briefing

Ex-Cohere engineers and Blue J executive raise US$6M to launch new firm

By Anita Balakrishnan   |   Nov 10, 2026 | 3:27 PM ET

CN confirms work with Strathcona on northern B.C. crude-by-rail project

By Meghan Potkins   |   Nov 10, 2026 | 3:10 PM ET

Canada and Cohere sign AI safety pledge with Anthropic, OpenAI and other industry giants

By Catherine McIntyre   |   Nov 10, 2026 | 3:03 PM ET

Best business newsletter in Canada

Get up to speed in minutes with insights and analysis on the most important stories of the day, every weekday.

Exclusive events

See the bigger picture with reporters and industry experts in subscriber-exclusive events.

Membership in The Logic Council

Membership provides access to our popular Slack channel, participation in subscriber surveys and invitations to exclusive events with our journalists and special guests.

Recent Popular Stories

News

Wealthsimple launches AI assistant as Canada’s big banks block third-party agents

By Chaimae Chouiekh   |   Nov 5, 2026
News

Former Ciena employee claims she was fired for reporting sexual assault by executive

By Catherine McIntyre   |   Nov 3, 2026
An exterior of a five-storey office building with two Canadian flags out front. Above the entrance is a four-storey window with Ciena's logotype written sideways.
Commentary

Carmichael: Carney and Champagne’s budget sends the bond market a message

By Kevin Carmichael   |   Nov 5, 2026
An image of Mark Carney against a light and dark background.
News

Ottawa extends open banking principles to other sectors—but continues to delay original framework

By Claire Brownell   |   Nov 5, 2026
News

Canada is buying military gear for a world where ‘pretty much everything’ changed

By David Reevely   |   Nov 2, 2026
Three people, wearing business clothing and red poppy pins, sit on chairs on a stage. The person in the middle is speaking. A blue background is visible behind them.
News

Conservatives challenge Ottawa to justify its $1.6B Cohere investment

By Catherine McIntyre   |   Nov 2, 2026
An image of Prime Minister Mark Carney, standing in front of a microphone and speaking. He is wearing a blue suit and tie, while looking away from the camera. He is standing in front of a dark background. The Cohere logo is visible in the background.

Canada's most influential executives and policymakers are reading The Logic

  • CPP Investments
  • Sun Life Financial
  • C100
  • Amazon
  • Telus
  • Mastercard
  • bdc
  • Shopify
  • Rogers
  • RBC
  • General Motors
  • MaRS
  • Government of Canada
  • Uber
  • Loblaw Companies Limited
logic-logo

Canada's Business and Tech Newsroom

100% human-crafted journalism

Newsroom

  • News Tips
  • AI Policy
  • Editorial Disclosures
  • Story Pitches

Company

  • About Us
  • Terms of Service
  • Privacy Statement
  • Corporate Information

Contact

  • Contact Us
  • Advertise
  • FAQs
  • Work at The Logic

© 2026 The Logic Inc. All Rights Reserved.

Trusted by leaders

Error

Account creation failed.

Please email us at [email protected].

Create Account

[wppb-register form_name=”cozmo-registration-form-for-modal”]

I do have an account
Login
or

[wppb-login]

I don’t have an account