By Estelle Azemard, Vice President Americas, OVHcloud
The first weeks of 2025 have already made one thing clear: this will be a year of transition. Political and social forces are shaping the technology landscape more than ever—whether through increasing demands for sustainable AI, shifting policies that impact digital sovereignty, or evolving business strategies to enhance competitiveness.
To understand key trends that will drive the local technology landscape in the next twelve months, OVHcloud surveyed Canadian businesses in the Toronto-Waterloo region, one of the country’s most dynamic tech hubs. The results highlight three major priorities shaping the market in the year ahead:
Data sovereignty is being prioritized
Shifting policies in the U.S. are already shaping the conversation around data sovereignty in Canada. As cross-border data flows and privacy concerns grow, many Canadian businesses are reassessing their data protection and storage strategies to navigate an increasingly complex landscape. According to a recent OVHcloud-Léger study, 78% of Canadian IT leaders refuse to have their data hosted outside of Canada, and 88% say local data storage is increasingly critical for compliance, confidentiality, and security.
However, true digital sovereignty goes beyond data residency. Business leaders are taking a more comprehensive approach, ensuring control not just over where their data is stored, but also over the technology that powers their infrastructure—reducing risks related to vendor lock-in and extraterritorial regulations.
The shift towards open cloud standards grows
Businesses are moving toward cloud providers that support open standards, allowing greater flexibility and seamless migration between platforms. Vendor lock-in with major cloud providers can limit innovation and control, prompting organizations to embrace multicloud strategies in 2025. Nearly two-thirds (64%) of respondents feel constrained by U.S. cloud giants due to limited flexibility in switching vendors. Open standards offer a way forward—enabling greater interoperability, reducing dependency on single providers, and ensuring compliance with evolving regulations. As cloud adoption continues to accelerate, organizations will prioritize architectures that provide transparency, customization, and long-term control over their digital assets.
Sustainable innovation gains momentum
Sustainability continues to be a priority for businesses. However, with complex reporting frameworks and uncertainty around carbon offset and renewable programs in Canada, organizations are looking for technology partners that can transparently demonstrate their impact. To support customers sustainability commitments, OVHcloud launched a carbon calculator that provides a clearer understanding of their cloud infrastructure’s carbon footprint – based on local power mix and requirements. By assessing their energy consumption, organizations can make informed decisions and adjust their usage to reduce their environmental impact.
As AI adoption expands, there is growing demand for sustainable AI development. At the recent AI Action Summit, OVHcloud became a founding member of the Coalition for Sustainable AI, an initiative committed to energy-efficient AI solutions aligned with the United Nations’ Sustainable Development Goals (SDGs).
Encouragingly, 64% of organizations feel prepared to manage AI-related privacy and security risks, reflecting growing confidence in AI governance strategies. However, with 20% remaining neutral and 13% acknowledging a lack of preparedness, there is still a need for industry-wide collaboration to ensure AI is both responsible and sustainable.
Looking ahead: A defining year for digital strategy
As businesses and governments navigate an evolving digital landscape, the choices made in 2025 will set the course for years to come. Organizations that prioritize digital sovereignty, embrace open cloud standards, and integrate sustainability into their AI strategies will be better positioned to drive innovation, reduce risk, and maintain long-term resilience. The technology sector is at a crossroads, and the businesses that take control of their digital future today will lead the next era of innovation.
