In a move amid deepening transatlantic trade and tech tensions, Microsoft has pledged to take legal action against the U.S. government if ordered to suspend its European cloud operations. President Brad Smith announced the commitment in Brussels, vowing to defend contracts and laws that anchor Microsoft’s European operations. At the same time, the company unveiled plans to more than double its data center capacity across Europe and deepen partnerships with local cloud providers—positioning itself as a champion of Europe’s digital resilience and regulatory autonomy.
At the heart of the announcement is a pledge to expand Microsoft’s data center operations in 16 European countries, increasing the company’s local cloud capacity by 40% over the next two years. By 2027, Microsoft’s European footprint will span over 200 data centers, reinforcing the company’s bet that Europe will be a global epicenter for AI-driven productivity and innovation.
"Digital stability and sovereignty are no longer optional—they're strategic imperatives,” Smith stated. “We’re committing to Europe not just with words, but with concrete infrastructure, legal safeguards, and deep partnerships."
A European Cloud for Europe
In response to growing concerns over digital sovereignty and geopolitical tensions, Microsoft is creating a more autonomous European cloud architecture. It will be governed by a European board of directors and legally shielded from foreign government interference through what the company calls a Digital Resilience Commitment. Microsoft has pledged to contest any order—from any government—that would force it to cease European operations or compromise user data, and to embed this protection in contracts with EU governments.
The company will also rely on partnerships with European firms—such as Bleu in France and Delos in Germany—for operational continuity in worst-case scenarios, such as court-mandated service suspensions.
Data Privacy and Sovereignty: No Room for Compromise
With the EU’s strict data privacy standards in mind, Microsoft reaffirmed its commitment to storing and processing European customer data entirely within EU and EFTA borders. The company’s EU Data Boundary project, completed earlier this year, extends this protection to technical support data as well. Microsoft says it now offers the “most comprehensive” data residency and sovereignty solutions among global cloud providers.
These technical guarantees are underpinned by legal muscle. Microsoft has a proven record of fighting legal demands—both in the US and abroad—that conflict with EU privacy laws, and even won a landmark US Supreme Court case on cross-border data access.
A Cybersecurity Pivot Point
Microsoft is also stepping up its role as a frontline defender of Europe’s digital borders. Following its rapid response to cyberattacks in Ukraine and ongoing support to NATO allies, the company is appointing a dedicated Deputy Chief Information Security Officer (CISO) for Europe. This new role will oversee compliance with Europe’s emerging cybersecurity laws, including the Digital Operational Resilience Act (DORA) and the Cyber Resilience Act (CRA).
In a move that echoes the EU’s push for independent validation, Microsoft announced that it will undergo third-party auditing to verify compliance with its European commitments—a clear nod to the GDPR-era expectation of accountability.
A Vote of Confidence in Europe’s Tech Future
Crucially, Microsoft is aligning its long-term strategy with the EU’s industrial policy goals, including support for open-source development and Europe’s broader digital competitiveness. With AI considered the next industrial revolution, the company is positioning itself as a catalyst for productivity growth, job creation, and innovation—particularly in key sectors like healthcare, education, and manufacturing.
While some may see the commitments as an effort to pre-empt regulatory scrutiny, they also reflect a maturing relationship between Big Tech and European lawmakers—one built on mutual recognition of strategic dependencies.
As Smith concluded: “This is not just about business. It’s about building digital resilience together—Europe’s way.”
