OpenText and TELUS partner to deliver Canadian sovereign AI-powered solutions for government and business

Rhea-AI Summary

OpenText (NASDAQ: OTEX) and TELUS have announced a strategic partnership to launch the OpenText and TELUS Canadian Sovereign Cloud, set to be available in September 2025. This enterprise-grade cloud computing and AI platform ensures complete data sovereignty by keeping all operations within Canadian borders.

The platform will operate from TELUS' Canadian data centers in Rimouski, Quebec, and Kamloops, British Columbia. OpenText currently serves 1,600 Canadian institutions, with nearly a thousand organizations already using AI-powered cloud applications. The partnership will integrate OpenText's Aviator AI products with TELUS' AI Factory, offering sovereign AI-enabled search and summarization capabilities while maintaining data security within Canada.

Positive

• Strategic partnership between two major Canadian tech companies to deliver sovereign cloud solutions
• Large existing customer base with 1,600 Canadian institutions already served by OpenText
• Complete data sovereignty ensuring security and compliance with Canadian regulations
• Platform will be available through existing procurement vehicles, streamlining adoption

Negative

• Launch delayed until September 2025, potentially giving competitors time to develop similar solutions
• Limited to Canadian territory, which may restrict international scalability

Insights

Enterprise Technology Strategist

OpenText's strategic partnership with TELUS creates a sovereign cloud AI platform poised to capture Canadian government and enterprise markets with data residency requirements.

This partnership between OpenText and TELUS represents a strategic market positioning move targeting the growing demand for sovereign cloud and AI solutions in Canada. The companies are creating a complete ecosystem where Canadian organizations can leverage advanced AI capabilities while ensuring their data never leaves Canadian borders—addressing critical data sovereignty concerns that have become increasingly important for government agencies and regulated industries.

The timing is particularly strategic as governments worldwide are implementing stricter data residency requirements, creating regulatory tailwinds for sovereign cloud offerings. By targeting both government and enterprise customers, OpenText is expanding its addressable market in Canada where it already serves 1,600 institutions, with nearly 1,000 already using its AI applications.

The partnership leverages complementary strengths: OpenText contributes its enterprise information management and AI expertise via its Aviator AI products, while TELUS provides the secure Canadian data center infrastructure in Rimouski, Quebec, and Kamloops, British Columbia. This allows OpenText to offer sovereign versions of its cloud services without massive infrastructure investments.

Notably, the explicit endorsement from Canada's Minister of Artificial Intelligence and Digital Innovation signals potential favorable government procurement opportunities. Both companies' early adoption of Canada's AI code of conduct further positions them as trusted providers for government contracts.

The September 2025 launch timeline gives OpenText adequate preparation for sales and implementation cycles, particularly for targeting government fiscal year planning. This represents a calculated move to capture market share in the emerging sovereign cloud segment while strengthening OpenText's competitive positioning against global hyperscalers that may face challenges meeting strict Canadian data residency requirements.

WATERLOO, ON, July 30, 2025 /PRNewswire/ -- OpenText™ (NASDAQ: OTEX), (TSX: OTEX), the leading information management company, and TELUS, a world-leading communications technology company, today announced the launch of the OpenText and TELUS Canadian Sovereign Cloud. This offering empowers Canadian organizations and government agencies with access to enterprise-grade cloud computing and AI capabilities while ensuring complete data sovereignty — with every application, dataset, computation and network operation remaining securely within Canadian borders.

This strategic partnership brings together Canadian infrastructure, AI innovation and trusted advisory services to deliver a truly sovereign, secure and scalable cloud AI platform designed specifically for Canadian enterprises and government institutions. Today, OpenText already serves 1,600 Canadian institutions with nearly a thousand organizations actively using and benefiting from AI-powered applications in the cloud. Now, Canadian customers have access to a fully sovereign cloud and AI environment that meets the highest standards of data residency, security and compliance.

"OpenText is excited to partner with TELUS to deliver these strategic capabilities for Canadian customers.  Together with TELUS, we are delivering a uniquely Canadian solution — one that empowers our customers to innovate with confidence, knowing their data and AI workloads remain protected and in-country."

Mark J. Barrenechea, OpenText CEO & CTO

"This partnership represents a bold and important step forward in Canada's digital sovereignty. By combining TELUS' advanced Sovereign AI Factory offering with OpenText's enterprise AI capabilities, we are delivering Canada's first truly sovereign AI platform. Together with OpenText, we will enable our customers to leverage the complete AI development process — from building new AI models and fine-tuning existing ones for their specific needs, to deploying them in their business operations – all while keeping Canadian data safely within our nation's borders."

Darren Entwistle, President and CEO, TELUS

"Canada needs trusted data infrastructure and industry-leading sovereign AI capabilities to advance our technology sector. Seeing two leading, innovative Canadian companies come together to build the digital and AI backbone of the future underscores the kind of vision and leadership Canada needs right now. This will help build the economy of the future and serve Canadians in the digital economy of tomorrow. We need to see more collaborations like this to drive our nation forward."

The Honourable Evan Solomon, Minister of Artificial Intelligence and Digital Innovation

A Canadian-first cloud and AI platform

The OpenText and TELUS Canadian Sovereign Cloud is a purpose-built, enterprise-ready solution that runs entirely within TELUS' Canadian data centers, including highly secure facilities in Rimouski, Quebec, and Kamloops, British Columbia. It delivers high-performance AI computing capabilities within a secure environment, providing essential sovereign AI compute services for organizations requiring both advanced AI workloads and absolute compliance with Canadian security standards and privacy regulations.

A commercially proven solution

OpenText and TELUS, both early signatories of the Government of Canada's voluntary AI code of conduct, have long-standing track records of serving Canadian governments, businesses and institutions. With this new offering, OpenText and TELUS are extending their capabilities to meet the evolving needs of our clients.

In addition, OpenText's family of Aviator AI products will leverage TELUS' pioneering AI Factory to offer a sovereign configuration hosted entirely in Canada, enabling customers to realize the benefits of AI-enabled search and summarize while keeping data secure within Canadian borders. 

OpenText's private cloud solutions are available through existing procurement vehicles and have undergone rigorous technical evaluation, making them ready for deployment today.

Supporting Canadian innovation and growth

The launch represents OpenText's and TELUS' broader commitment to Canadian innovation. The OpenText and TELUS Canadian Sovereign Cloud offers a uniquely Canadian solution that combines cloud agility with sovereign assurance, demonstrating how Canadian organizations can compete globally while maintaining complete control over their most valuable data. 

Getting started with Sovereign AI

The OpenText and TELUS Canadian Sovereign Cloud will be available starting September 2025 for commercial and government customers across Canada. For more information or to schedule a consultation, visit opentext.com/sovereign-ai-cloud and telus.com/aifactory.

About OpenText

OpenText™ is a leading Cloud and AI company that provides organizations around the world with a comprehensive suite of Business AI, Business Clouds, and Business Technology.  We help organizations grow, innovate, become more efficient and effective, and do so in a trusted and secure way – through Information Management. For more information about OpenText (NASDAQ/TSX: OTEX), please visit us at www.opentext.com.

Connect with us:
OpenText CEO Mark Barrenechea's blog
LinkedIn I X 

About TELUS

TELUS (TSX: T, NYSE: TU) is a world-leading communications technology company operating in more than 45 countries and generating over $20 billion in annual revenue with more than 20 million customer connections through our advanced suite of broadband services for consumers, businesses and the public sector. We are committed to leveraging our technology to enable remarkable human outcomes. TELUS is passionate about putting our customers and communities first, leading the way globally in client service excellence and social capitalism. Our TELUS Health business is enhancing more than 150 million lives across 200 countries and territories through innovative preventive medicine and well-being technologies. Our TELUS Agriculture & Consumer Goods business utilizes digital technologies and data insights to optimize the connection between producers and consumers. Guided by our enduring 'give where we live' philosophy, TELUS, our team members and retirees have contributed $1.8 billion in cash, in-kind contributions, time and programs including 2.4 million days of service since 2000, earning us the distinction of the world's most giving company.

We're always building Canada.

For more information, visit telus.com or follow @TELUSNews on X and @Darren_Entwistle on Instagram.

Certain statements in this press release may contain words considered forward-looking statements or information under applicable securities laws. These statements are based on current expectations, estimates, forecasts and projections. These statements are subject to important assumptions, risks and uncertainties that are difficult to predict, and the actual outcome may be materially different. Assumptions, although considered reasonable at the date of this press release, may prove to be inaccurate and consequently actual results could differ materially from the expectations set out herein. For additional information with respect to risks and other factors which could occur, see filings with securities regulators. Readers are cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Unless otherwise required by applicable securities laws, there is no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Further, readers should note that we may announce information using our websites, press releases, securities law filings, public conference calls, webcasts and the social media channels identified on the Investors section of our websites. The information posted through such channels may be material. Accordingly, readers should monitor such channels in addition to our other forms of communication. 

Copyright © 2025 OpenText. All Rights Reserved. Trademarks owned by OpenText. One or more patents may cover this product(s). For more information, please visit https://www.opentext.com/patents.

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SOURCE Open Text Corporation

FAQ

What is the OpenText and TELUS Canadian Sovereign Cloud partnership?

It's a strategic partnership launching in September 2025 that provides enterprise-grade cloud computing and AI capabilities while ensuring all data and operations remain within Canadian borders.

Where will OTEX and TELUS host their sovereign cloud data centers?

The platform will operate from TELUS' Canadian data centers located in Rimouski, Quebec, and Kamloops, British Columbia.

How many Canadian institutions does OpenText currently serve?

OpenText currently serves 1,600 Canadian institutions, with nearly 1,000 organizations actively using AI-powered applications in the cloud.

When will the OpenText and TELUS Canadian Sovereign Cloud be available?

The platform will be available starting September 2025 for commercial and government customers across Canada.

What AI capabilities will the OTEX and TELUS partnership offer?

The partnership will integrate OpenText's Aviator AI products with TELUS' AI Factory, offering AI-enabled search and summarization capabilities while maintaining data security within Canadian borders.