Canadian Data Residency: Why It Matters for Your Family Documents
When you store your family's most sensitive documents online -- tax returns, insurance policies, medical records, legal papers -- where that data physically lives matters more than most people realize.
For Canadian families, the question is simple: is your data stored in Canada, or is it sitting on a server in Virginia, subject to US law?
When I started building Archevi, I assumed I'd use AWS or Google Cloud -- everyone does. Then I read the CLOUD Act and realized that US-based providers can be compelled to hand over data stored anywhere in the world. For a service handling families' most sensitive documents, that wasn't acceptable. I chose DigitalOcean's Toronto data centre namely so that Canadian law -- and only Canadian law -- governs your data.
Why Location Matters
Data residency isn't just a technical detail. It determines which country's laws govern your information. When your documents are stored in Canada, they're protected by PIPEDA (the Personal Information Protection and Electronic Documents Act) and provincial privacy legislation. When they're stored in the US, they're subject to US law -- including the Patriot Act and CLOUD Act.
Here's why that matters for families:
- PIPEDA requires organizations to limit data collection, use, and disclosure to what's necessary for the stated purpose. Your documents can't be repurposed without consent.
- The US CLOUD Act allows US authorities to compel US-based companies to produce data stored anywhere in the world, even on Canadian servers. If your provider is a US company, this applies regardless of where the server is.
- Canadian privacy law gives you the right to access, correct, and delete your personal information. These rights are enforceable by the Office of the Privacy Commissioner of Canada.
Where Major Services Store Your Data
| Service | Data Location | Governing Law | Company HQ |
|---|---|---|---|
| Google Drive | US (primarily) | US law + CLOUD Act | US (Alphabet) |
| Dropbox | US | US law + CLOUD Act | US |
| iCloud | US + select regions | US law + CLOUD Act | US (Apple) |
| OneDrive | Varies by plan | US law + CLOUD Act | US (Microsoft) |
| Archevi | Canada (Toronto) | PIPEDA | Canada |
Most major cloud storage providers are US companies. Even when they offer regional data centres, the corporate entity is still subject to US jurisdiction.
The US CLOUD Act (2018) allows US law enforcement to compel any US-headquartered company to hand over data stored anywhere in the world. This means even if a US company stores your data on Canadian servers, US authorities can still request access without going through Canadian courts.
PIPEDA: What It Means for Your Family
PIPEDA establishes 10 fair information principles that Canadian organizations must follow. For families storing documents, the most relevant are:
PIPEDA establishes 10 fair information principles: accountability, identifying purposes, consent, limiting collection, limiting use/disclosure/retention, accuracy, safeguards, openness, individual access, and challenging compliance. These apply to all organizations handling personal information in the course of commercial activity in Canada.
- Consent -- your data can only be collected, used, or disclosed with your knowledge and consent
- Limiting collection -- organizations can only collect information necessary for their stated purpose
- Limiting use, disclosure, and retention -- your data can't be repurposed or kept longer than needed
- Accuracy -- organizations must keep your data accurate and up to date
- Safeguards -- your information must be protected with security appropriate to its sensitivity
- Individual access -- you have the right to see and correct your personal data
These principles apply to organizations operating in Canada. When your data is stored by a US company under US law, these protections may not apply.
The Cross-Border Problem
Many Canadian families unknowingly store their most sensitive documents with US-based services. Google Drive, Dropbox, and iCloud are convenient and familiar -- but they're all subject to US law.
This creates a practical problem: if a US government agency requests your data, your Canadian privacy rights may not protect you. The US CLOUD Act explicitly states that a US company must comply with valid legal process regardless of where the data is stored.
For most families, this is a theoretical risk. But for families with significant assets, cross-border business interests, or sensitive legal matters, it's worth considering.
Beyond Storage: What About AI Processing?
Data residency gets more complicated when AI is involved. Even if your documents are stored in Canada, many tools send your data to US-based language models for processing.
Archevi addresses this with boundary anonymization. Your documents stay on Canadian servers. When AI processing is needed, only anonymized query text (with personal information replaced by surrogates) reaches cloud AI providers. Your real names, addresses, and sensitive details never leave our infrastructure.
This means your data residency guarantee isn't just about storage -- it extends to AI processing as well.
What to Look for in a Document Service
If Canadian data residency matters to your family, here's what to check before choosing a service:
- Where is the company incorporated? A Canadian company is subject to PIPEDA. A US company is subject to the CLOUD Act.
- Where are the servers? Canadian servers under a Canadian company provide the strongest protection.
- What happens during AI processing? If the service uses AI, does your data leave Canada for processing? Is it anonymized first?
- What's the data retention policy? Can you delete your data completely? How long is it retained after account closure?
- Is there a data processing agreement? Legitimate services will document exactly how they handle your information.
Five things to check before trusting any service with family documents: (1) Where is the company included? (2) Where are servers physically located? (3) What privacy law governs the data? (4) Does the provider use sub-processors in other jurisdictions? (5) Can you export all your data at any time?
The Bottom Line
Canadian data residency isn't just a checkbox. It's a meaningful privacy protection that determines which laws govern your family's most sensitive information.
Archevi stores all documents on Canadian infrastructure (DigitalOcean, Toronto region), operates under PIPEDA, and ensures your data stays in Canada even during AI processing. Sign up free to see how it works, or read more about our security architecture.
For details on how AI providers handle your data differently, see why your family AI won't train on your data, including a comparison table of major AI services.
