Microsoft Expands European Data Centre Footprint

In an attempt to strengthen sovereignty, trust and resilience across Europe, Microsoft has announced an extensive set of digital commitments for the continent.

The news comes at a time of tightening EU regulations, rising geopolitical tensions and a growing demand for digital sovereignty. 

Microsoft’s pledge focuses on trust, technology and control to align itself more closely with European governance, values and economic ambitions. 

In a blog, Brad Smith, Vice Chair & President Microsoft, explained: “As a multinational company, we believe in trans-Atlantic ties that promote mutual economic growth and prosperity. ​We were pleased the Trump administration and the European Union recently agreed to suspend further tariff escalation while they seek to negotiate a reciprocal trade agreement.

"We hope that successful talks can resolve tariff issues and reduce non-tariff barriers, consistent with the recommendations in the recent Draghi report.

“We will always be dedicated to creating jobs, promoting economic opportunities, and strengthening cybersecurity on both sides of the Atlantic. The five commitments below, like the very first European version of Microsoft Word, take our support for Europe another step forward.”

Data centre expansion across Europe

Microsoft has demonstrated its commitment to a significant expansion of its cloud and AI infrastructure across Europe. This will help to support long-term economic competitiveness and boost digital capacity.

Over the next two years, the company plans to increase its European data centre capacity by 40%, making it one of the largest infrastructure investments in its history.

Between 2023 and 2027, Microsoft will double its European data centre capacity. This will be down to its latest commitments and plans to expand data centre operations in 16 European countries.

The expansion will help to support a diversified cloud ecosystem.

Microsoft has formed a joint venture named Bleu with Capgemini and Orange. Under French control, Bleu will offer Microsoft 365 productivity tools and Microsoft Azure cloud services.

Microsoft, Arvato Systems and SAP have partnered on another sovereign data centre project. Hosted in German data centres and operated by German personnel, SAP’s subsidiary, Delos Cloud GmbH, is creating a sovereign cloud platform for the German public sector.

Microsoft’s announcement will mirror its commitment to keeping data operations local while offering the infrastructure necessary to improve industrial innovation, AI adoption and secure governance services.

Sovereignty and legal resilience at the core

Microsoft has placed legal resilience and digital sovereignty at the centre of its strategy to support institutions and governments across Europe.

The tech giant announced new steps to maintain legal protection for European operations and uninterrupted service delivery.

Microsoft will oversee its data centre operations across the continent with the creation of a European board of directors. This will be made exclusively of European nationals. 

This board will improve the organisational link between Microsoft’s cloud services and the legal jurisdictions in which they operate and will operate under European law.

A legally binding provision — Digital Resilience Commitment — will be featured in all contracts with the European Commission and European national governments. Any government order that aims to disrupt or suspend its cloud services in Europe will be contested under this commitment. 

Microsoft will secure its commitment to protecting Europe’s digital autonomy through these measures, meaning European infrastructure, data and public services remain resilient, secure and legally protected.

Cybersecurity: a growing strategic priority

Microsoft recognises the increasing sophistication and scale of global cyber threats and has reinforced its commitment to cybersecurity across Europe.

It has ensured sustained digital operations beyond the reach of physical attacks and secure data relocation since the start of the conflict in Ukraine, providing more than US$500m in free technology and financial assistance.

Microsoft has also given uninterrupted cybersecurity support to NATO, Ukraine and other European partners, securing elections, sharing threat intelligence and disrupting malicious campaigns. 

The tech giant has announced it has appointed a European Deputy Chief Information Security Officer (Deputy CISO). This executive will oversee compliance with key EU regulations, such as the NIS 2 Directive, the Digital Operational Resilience Act (DORA) and the Cyber Resilience Act (CRA). They will report directly to Microsoft’s Global CISO, Igor Tsyganskiy. 

Microsoft plans to enhance compliance with the CRA by directing resources to topics like security-by-design, vulnerability disclosure and improving open-source security. It will also contribute to the Expert Group on Cybersecurity of Products with Digital Elements and collaborate with the European Commission and stakeholders on CRA implementation as part of its Secure Future Initiative. 

Significance of Microsoft’s commitments 

Microsoft’s latest commitments are one of the most regulatory-aligned and extensive infrastructure strategies.

Its investment in European data centre capacity will mirror the growing demand for AI-driven and cloud-based services and demonstrate the importance of data centres in Europe’s economic and digital future. 

Not only will its changes to European governance strengthen local oversight and align operations with regional legal frameworks, but its Digital Resilience Commitment will set a new standard for legal resilience and service continuity. 

Together, these measures will boost infrastructure capacity and boost compliance, trust and autonomy across the European data centre industry. 

Global cloud providers can use these announcements as a framework for how they can operate sustainably and responsibly across the continent.

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