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Microsoft Expands Sovereign Cloud, Supporting EU Data Sovereignty

Microsoft

Business Honor
21 June, 2025

Microsoft improves EU data sovereignty by expanding cloud services, local data control, and privacy tools and offering trusted AI partners.

Microsoft announced an important expansion of its sovereign cloud services to provide European businesses more authority and trust over their data. In spite of rising concerns about data privacy and international tensions, this step shows the company's ongoing dedication to European digital sovereignty.

Judson Althoff, the Microsoft EVP and Chief Commercial Officer, introduced the Sovereign Public Cloud, an advanced version of the Microsoft Cloud for Sovereignty, in a recent blog post. To make sure that data remains in Europe and meets with the rules of the EU, it will be accessible in all currently operating European data center areas. Additionally, Microsoft has introduced a Sovereign Private Cloud with its on-premises solution, Azure Local. This will meet strict sovereignty demands while enabling important business needs like virtualization, communication, and teamwork.

The improvement also includes a European data guardian, tools for customer-managed encryption keys, and simpler setup for instances subject to regulations. Likewise, Microsoft's AI Cloud Partner Program will soon launch a Sovereign Cloud specialization. Users will be allowed to find partners who follow EU sovereignty standards through this. Lenovo, IBM, Accenture, Lenovo, Capgemini, and others are early partners.

These developments came after Microsoft President Brad Smith agreed to protect customer data from foreign government interference and increase the company's European server capacity by 40% in the next two years. Similar steps are being carried out by competitors. AWS has launched an exclusive European Sovereign Cloud with its own EU-based operations and regulation, while Google Cloud introduced its Data Boundary and User Data Shield in May. Cloud sovereignty is growing more important as digitization picks up speed. Microsoft is supporting the growth of a future where European businesses continue to remain dominant.