Yes, for government entities, but the rest of the comments here are talking about businesses, which are going to be the primary consumers of AWS in Canada. There's probably many more requirements that would be needed to be met for any cloud provider to be used for governments.
I don't believe any provinces have requirements on border crossing, and there's no federal requirement on data sovereignty at all for private corporations.
It would be virtually impossible to comply with the never crossing the border as part of a fast link even if you hosted your own data unless you controlled every part of the link.
I was in a territory (not a province) and we owned every meter of fiber in two territories.
I can assure you the data we were sending around didn't even leave our territory, let alone the country, seeings we owned every single scrap of networking hardware in a ~10,000km radius.
I don't believe any provinces have requirements on border crossing, and there's no federal requirement on data sovereignty at all for private corporations.