Microsoft Expands Cloud, AI Footprint Across Europe

A new initiative to expand cloud and AI infrastructure across Europe has been announced by Microsoft.

Earlier today, the company revealed plans to increase its European data center capacity by 40% in the next two years. With operations expanding in 16 countries, Microsoft aims to double its footprint between 2023 and 2027.

This move forms the foundation of five new digital pledges to Europe, all designed to reinforce the region’s digital sovereignty and cybersecurity while stimulating innovation and economic opportunity.

Local Control, Legal Safeguards and Open AI

Microsoft’s strategy includes the introduction of sovereign and public cloud models tailored to European needs.

In France and Germany, partnerships with Capgemini, Orange, SAP and others are delivering trusted cloud platforms operated under local control. The company is also giving local providers favorable terms for running Microsoft services on their own infrastructure.

To address geopolitical risks, Microsoft has also pledged to uphold Europe’s digital resilience through legal and technical means. This includes a new European board of directors overseeing data center operations and a legally binding Digital Resilience Commitment embedded in government contracts.

Read more on AI and cloud infrastructure in Europe: EU Commission to Invest €1.3bn in Cybersecurity and AI

The initiative also emphasizes customer data protection. Following the launch of its EU Data Boundary project in January 2024, Microsoft now allows European customers to store and process data entirely within the EU and EFTA. The company reinforces this with encryption tools, confidential computing and a “lockbox” system that puts customers in control of their data.

Cybersecurity and Regulatory Compliance Take Center Stage

Microsoft has provided over $500m in cybersecurity support to Ukraine since 2022 and continues to assist NATO and EU governments.

A new Deputy CISO for Europe will oversee compliance with the EU’s emerging cybersecurity framework, including the Digital Operational Resilience Act and the Cyber Resilience Act.

Security commitments include:

• Incident and vulnerability reporting
• Security-by-design implementation
• Independent audits of Microsoft’s compliance

Investing in Open-Source Innovation

Finally, Microsoft is reaffirming its support for open-source development by maintaining open access to its Azure AI platform.

More than 1800 AI models – many of them open-source – are now hosted on Azure, offering businesses across Europe the flexibility to innovate using public APIs.

From HR software in Spain to cancer research in France, European firms are already leveraging this infrastructure to grow and compete in the evolving AI economy.

“As we celebrated Microsoft’s 50th birthday earlier this month, we recognized that our longstanding presence in Europe has been a lynchpin of our success,” the tech giant said.

“Europe has treated us well. Our support for Europe has always been – and always will be – steadfast.”

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