Okta to launch Canadian data cell as sovereignty debate intensifies

As considerations around data sovereignty heat up, San Francisco-based data security company Okta has opened a new Canadian “data cell.”

Okta is built upon cell-based architecture, which partitions its service across “isolated, shared-nothing, identical” replicas of its infrastructure within its databases. The new full-service cell is hosted within Canada to ensure customer identity data stays in the country and aligns with local privacy and compliance requirements, the company said.

“Canadian businesses are embracing AI to accelerate productivity and innovation, and they deserve a foundation built on trust and data residency.”

The Canadian support comes as conversations around data sovereignty take hold in the country. The Canadian government has earmarked nearly $1 billion toward building a sovereign cloud, which, according to artificial intelligence (AI) minister Evan Solomon, means Canadian control over data that is “free from coercion.” Several companies, including telecoms Bell, Telus, and Hypertec, are positioning themselves as the made-in-Canada solution.

Many are concerned that foreign legislation, including the United States’ CLOUD Act and Foreign Intelligence Surveillance Act (FISA), might let other countries’ law enforcement agencies compel the transfer of Canadian residents’ data. In a Canadian government white paper, officials warned that the nation wouldn’t have “full sovereignty” over data with service providers that are subject to foreign laws. In this light, Okta’s cell wouldn’t necessarily keep information within Canada.

Canadian sovereign cloud primer

As unpredictable US policy spurs concern about data sovereignty, Canadian policymakers and companies are racing to make a Canadian sovereign cloud a reality.

• Carney says new Major Projects Office will help build a “Canadian sovereign cloud”

• Canada hopes to build a sovereign cloud to counter US dominance. It won’t be easy

• Telus opens inaugural Sovereign AI Factory in Rimouski

• Mila partners with Hypertec and 5C to launch Sovereign AI Research Hub in Montréal

• Canadian cloud providers unite to launch sovereign cloud offering for government

In October, Solomon said he wouldn’t rule out American partners as part of a Canadian sovereign cloud, provided they weren’t subjected to foreign legal pressure.

Okta is an enterprise identity management service that allows IT teams to manage employees’ or AI agents’ access to any application or device. It provides features like multi-factor authentication, single sign-on, and mobile identity management.

With Okta’s new cell, expected to go live in Q1 2026, Canadian organizations will gain access to its Enhanced Disaster Recovery offering, which claims to recover from service failures in five minutes or less. Okta also intends to grow its team in Canada and introduce French-language support across its products for Québec-based and Francophone users.

“Canadian businesses are embracing AI to accelerate productivity and innovation, and they deserve a foundation built on trust and data residency,” Okta Canada vice-president Dan Kagan said in a statement. “Our new data cell is an investment to help them securely innovate, empowering them to transform their operations with confidence.”

Feature image courtesy Okta via LinkedIn.