May 1, 2025 In response to escalating concerns over U.S. government influence on cloud operations, Microsoft has committed to legally contesting any orders that would disrupt its European data centres. The company also announced a significant expansion of its European infrastructure to reinforce trust and ensure digital resilience across the continent.
Amid growing apprehension about the security of data stored by U.S. tech giants, Microsoft President Brad Smith declared that the company would “promptly and vigorously contest” any directive from any government that seeks to suspend or cease its cloud operations in Europe. This assurance comes as European leaders and customers express unease over potential geopolitical disruptions, particularly under the current U.S. administration.
To bolster its commitment, Microsoft unveiled plans to increase its European data centre capacity by 40% over the next two years, expanding operations across 16 countries. This initiative aims to double the company’s European data center footprint between 2023 and 2027, enhancing service reliability and data sovereignty for European clients.
Furthermore, Microsoft introduced the “Microsoft Cloud for Sovereignty,” a suite designed to provide governments and public sector customers with greater control over their data, including options for data residency, encryption, and administrative access. This move is part of Microsoft’s broader strategy to align more closely with European values and regulatory expectations.
Microsoft’s proactive stance reflects a broader industry trend where U.S.-based cloud providers are seeking to address European concerns about data privacy, sovereignty, and geopolitical stability. By reinforcing its infrastructure and legal commitments, Microsoft aims to maintain its market position in Europe, which accounts for a significant portion of its global revenue.
This development also underscores the increasing importance of digital sovereignty for European nations, prompting discussions about reducing reliance on foreign technology providers and fostering homegrown alternatives.
