Microsoft has completed its EU Data Boundary project, ensuring that European Union (EU) and European Free Trade Association (EFTA) customers can now store and process their data within Europe. This initiative covers core cloud services like Microsoft 365, Dynamics 365, Power Platform, and most Azure services.
The project rolled out in three phases:
- Phase 1 (January 2023): Focused on storing and processing customer data within the EU and EFTA regions.
- Phase 2 (January 2024): Expanded to include pseudonymized personal data, ensuring even data altered to remove direct identifiers remained within these regions.
- Phase 3 (February 2025): Ensured that professional services data from technical support interactions for core cloud services are stored within the EU and EFTA regions.
While this development enhances data residency and transparency, some analysts caution that true data sovereignty isn’t fully guaranteed. U.S. laws like the CLOUD Act may still grant the U.S. government access to data stored by American companies, regardless of where it’s physically located. Therefore, European organizations are advised to scrutinize these measures and consider local providers to ensure data remains under European jurisdiction without external interference.
In limited security instances requiring a coordinated global response, essential data may be transferred with robust protections to safeguard customer information. Microsoft emphasizes transparency and implements comprehensive security measures, including encryption and strict access controls, to ensure customer data remains protected.
This milestone reflects Microsoft’s commitment to supporting Europe’s innovation, growth, and technology needs as the region moves into an increasingly digital future.
News: Microsoft completes landmark EU Data Boundary, offering enhanced data residency and transparency – Microsoft On the Issues
Documentation: Microsoft EU Data Boundary Overview | Microsoft Trust Center
