TLDR
- Microsoft commits C$7.5 billion to Canada over next two years, contributing to total C$19 billion investment from 2023 to 2027.
- Azure datacentre expansion in Canada Central and Canada East regions will bring new capacity online in second half of 2026.
- Ottawa-based Threat Intelligence Hub will combat cyberattacks from China, Russia, North Korea and other foreign actors targeting Canadian systems.
- In-country data processing for Copilot and Sovereign AI Landing Zone will keep Canadian data within national borders starting 2026.
- Microsoft trained 5.7 million Canadians in AI skills since July 2024 with goal of 250,000 credential holders by 2026.
Microsoft announced a C$7.5 billion investment in Canada over the next two years. The commitment forms part of a C$19 billion total investment spanning 2023 through 2027.
The spending targets cloud and AI infrastructure expansion across Canada. Microsoft will expand Azure Canada Central and Canada East datacentre regions.
New capacity goes live in the second half of 2026. The expansion supports Canada’s growing AI user base.
More than one-third of Canadians now use AI according to Microsoft’s tracking. Canada ranks 14th globally in AI adoption rates and 14th in GitHub AI contributors.
Microsoft has operated in Canada since 1985 when it opened a Toronto office. The company now employs over 5,300 people across 11 Canadian cities.
Microsoft’s Canadian partner ecosystem includes more than 17,000 companies. These partners pull in between C$33 billion and C$41 billion annually.
Ottawa Hub Tackles Rising Cyber Threats
Microsoft is establishing a Threat Intelligence Hub in Ottawa. The center will staff experts in threat intelligence, protection research and AI security.
The Hub works directly with Canadian government and law enforcement. Teams will track nation-state actors and organized crime targeting Canadian systems.
More than half of 2025 cyberattacks against Canada with identified motives sought financial gain. Around 80 percent attempted data theft.
Attacks originate from China, Russia, North Korea and nations across south Asia and the Middle East. Healthcare and education sectors absorbed nearly 20 percent of attacks.
Microsoft teams in Canada have been countering China-based threat actors. The company shared intelligence on North Korean IT workers using stolen identities to infiltrate Canadian tech firms.
Data Controls and Skills Training
Microsoft will process Copilot data within Canadian borders starting in 2026. The company will also deploy Sovereign AI Landing Zone as an open-source solution on GitHub.
Canadian customers gain access to Azure Key Vault next year. The service lets organizations maintain encryption key control on-premises or through third-party providers.
Confidential computing capabilities arrive in Canadian datacentres in 2026. The technology keeps data encrypted even during processing.
Since July 2024, Microsoft trained 5.7 million learners through free programs. Over 546,000 individuals finished AI training courses.
Microsoft targets 250,000 Canadians earning AI credentials by 2026. Currently just 24 percent of Canadians have AI training compared to 39 percent globally.
A new partnership with Actua will train 20,000 young Canadians in AI skills. The InSTEM program combines AI education with Indigenous cultural knowledge and language preservation efforts.
Microsoft gave C$219 million to Canadian nonprofits and charities in 2024. New datacentres will run on renewable energy and use water conservation systems aligned with 2030 sustainability commitments.
Microsoft supports roughly 426,000 jobs across Canada through its partner network. Close to 300,000 people build solutions on Microsoft platforms or provide related goods and services.
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