Does CiviCRM have servers in Canada and is it possible to only store your information on them?
CiviCRM is unlike other online CRMs in that you can host it yourself, rather than rely on the corporation that writes the software to host it. So you can host it wherever you like. This is a major selling point for jurisdiction-sensitive organizations!
If you don't want to host it yourself but would prefer your vendor handle it for you, that's also an option. Karin's answer is a good example of a Canadian provider who can host your CiviCRM site on Canadian servers.
As CiviCRM partners/IT Consultants in Canada we understand the importance of this and run all our CiviCRM projects for all our clients on private/dedicated servers in Canada (in data-centers in Toronto and in Montreal);
We've even had requests from US organizations to host with us up North here :-)
@Jon G's answer is good. Most CiviCRM installations use a VPS (virtual private server) and you can arrange for this yourself with Canadian hosting providers. The RAM, CPU and disk requirements will vary based on how much data you have and how many users; ask for advice here on StackExchange if you need help.
I tend to recommend hosting with Canadian-owned providers in Canadian data centres to be extra safe.
I would add that some of our Canadian clients choose to take advantage of the lower prices of servers in the US.