DND's $63 million Palantir contract flagged as not for public disclosure
Documents show the Department of National Defence has used the U.S. firm's Gotham software since 2020, raising questions about data sovereignty under the U.S. CLOUD Act.
By Ayanda Boateng ·
Documents obtained by the Investigative Journalism Foundation reveal that the Department of National Defence has relied on Palantir Technologies' Gotham software since 2020. The agreement, initially valued at $14 million, has the potential to reach a total cost of $63 million. Internal records indicate the contract was marked as not for public disclosure.
Palantir, a U.S. data analytics firm, has become a focal point in debates over digital sovereignty. The company was co-founded in 2003 by Alex Karp and Peter Thiel. It has played a large role in U.S. military and immigration operations, including the Project Maven artificial intelligence targeting program.
The Department of National Defence states that Gotham operates on closed, classified networks within secure Canadian facilities. The department asserts that no government data, prompts, outputs, or metadata are stored, accessed, or processed outside of Canada. However, officials declined to specify exactly what information the software handles, citing national security concerns.
Barry Appleton, an international lawyer practicing in Canada and the United States, disputes the department's position. He points to the U.S. CLOUD Act, which allows American authorities to compel U.S. companies to produce data they possess, custody, or control, regardless of where the data is physically located. Appleton argues that data held by Palantir could be subject to orders from American courts.
The department maintains that the CLOUD Act does not have authority over servers located in Canada. Appleton counters that the law focuses on the company's control of the data rather than the physical hardware. He expressed concern that Canadian strategic information could be surveilled during periods of trade tension.
Vass Bednar, managing director of the Canadian Shield Institute, warns that Canada is developing a digital dependency that benefits a U.S. company at the expense of its sovereignty. She cited disruptions to Starlink satellite services in Ukraine as an example of how foreign reliance can impact military operations. Jennifer Evans, a policy researcher, noted that DND should clarify if it uses air-gapping to isolate networks. Evans pointed to local firms like Caseway and Anvil as potential domestic alternatives.
France and Germany recently ended intelligence contracts with Palantir to explore domestic options. In the United Kingdom, members of parliament have called for the termination of a $619 million contract with the National Health Service over data access concerns.
