They probable siezed the entire contents of the datacenter, just to be sure they got everything offending. Might mean a few thousand customers will be inconvenienced, but it's the only way to be sure.
The only thing this is "sure" to do is absolutely kill the formerly thriving data center / cloud computing business in Canada.
With that much data, they barely have the justice / investigation capability in the ENTIRE COUNTRY to sort through it all, and it demonstrates without a doubt the capaiblity that they DO have is technically ignorant to the point of not being able to read labels and cross reference it with customer records.
The result will be more, but more distributed hosting of such things there by people that know the CA authorities are idiiots, and less economic activity of the obvious and apparently too good to resist concentrations of all data type activity regardless of legal status because nobody wants their legit servers sized by ignorant and out of control mounted pigs.
Some days I just wish America's Hat would just fall the fuck off.