91% of Canadian AI workloads run on US-headquartered hyperscaler infrastructure subject to the US Cloud Act and FISA Section 702. Canada has passed an AI regulation law (AIDA) it cannot enforce if compute is offshore. Canada's 20+ TWh/year of uncommitted hydroelectric surplus is not being used for sovereign AI compute.

Epoch: 95

Domain: defence

Fiscal cost estimate (LLM): $3.50B CAD

Structural estimate (RIPPLE): +$21,475.65B CAD net (v3-bfs-signed depth=2, decay=0.5/hop; diverges)

Top RIPPLE cost paths

• +$14,825.25B → consumer_spending (Consumer Spending Growth) via innovation_index
• +$4,178.03B → healthcare_spending (Healthcare Spending) via innovation_index
• +$1,886.85B → education_spending (Education Spending) via innovation_index
• +$569.31B → defense_spending (Defence Spending (DND)) via innovation_index

Causal effects: 4 downstream variables affected (1 immediate)

Divergence after: 0.250

Variable changes

• nato_target_gap: 114.15 → 110.65
• defence_spending: 45 → 48.5
• data_sovereignty_index: 28 → 62
• hydro_surplus_utilization_ai: 0 → 22
• sovereign_ai_compute_capacity: 0.5 → 300
• foreign_ai_data_processing_share: 91 → 65

Chamber amendment (round 1): Mandate 40% local hiring for construction and require co-investment in rural broadband infrastructure powered by the new data centers.

Targets sovereign_ai_compute_capacity.