Data residency and AI in Canada
Updated · 7 min read
When you type into an AI chatbot, your words travel somewhere. What “stored in Canada” does and doesn’t cover, and what to ask before you paste in anything sensitive.
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Three places your data can be
- 01
At rest
the stored copy of your account, chat history, uploaded files and memory.
- 02
In processing
the text a model reads to generate an answer.
- 03
In logs and backups
copies kept for reliability, debugging or abuse monitoring.
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What “stored in Canada” usually means
A provider that says your data is stored in Canada is normally talking about data at rest. That matters: it decides where your history physically lives. But it is worth asking separately where processing happens and where logs and backups are kept.
The gap is real. Some large AI providers now offer Canadian storage on enterprise plans while the model that reads each prompt still runs in another country — and their free and consumer plans usually have no Canadian option at all.
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Questions to ask
- 01
Where are conversations and files stored at rest?
- 02
Which AI models process my prompts, where do they run, and who operates them?
- 03
Can I see and delete what the assistant remembers about me?
- 04
Is my content used to train models, and can I opt out?
- 05
Can I export or delete everything and leave?
- 06
Is there a self-hosted or dedicated option if we need full control?
04
What the law expects
Under PIPEDA, Canada’s federal private-sector privacy law, organisations may send personal information outside Canada for processing, but they remain accountable for it: they must protect it with contracts and other means, and be open with people that it may be processed abroad.
Québec’s Law 25 goes further: before communicating personal information outside Québec, a business must assess the privacy risks — including the protection offered where the data is going — and put a written agreement in place. Other provinces have their own rules. This guide is general information, not legal advice.
Sources OPC — processing personal data across bordersCommission d’accès à l’information — communication outside Québec
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How Digby answers them
Digby stores accounts, conversations, memory and files in Canada; processes your prompts with open-weight models running on Canadian hardware; gives you visible, editable memory and deletable conversations; and offers self-hosting for organisations that want everything on their own infrastructure.
Frequently asked questions
Is it illegal to use an AI tool hosted outside Canada?
Generally no — Canadian law allows processing abroad, but the organisation stays accountable, and Québec requires a privacy assessment and written agreement first. Get advice for your situation.
Does “stored in Canada” mean the AI runs in Canada?
Not necessarily. Ask separately where the model that processes your prompts runs.
Try asking Digby
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Free, no account needed. Models and data stay in Canada.