Microsoft has launched a broad initiative to strengthen its cloud and artificial intelligence infrastructure across Europe, signaling a major investment in the region’s digital future.
Over the next two years, the company plans to expand its European data center capacity by 40%, as part of a longer-term goal to double its presence across 16 countries by 2027. This effort is tied to five new digital pledges focused on reinforcing Europe’s digital sovereignty, enhancing cybersecurity, and driving innovation and economic development.
Localized Cloud Solutions and Data Sovereignty
As part of the initiative, Microsoft is introducing cloud models specifically tailored to European regulatory and operational needs. This includes sovereign and public cloud options that provide local control over infrastructure and data. Partnerships in key markets such as France and Germany are helping deploy trusted cloud platforms operated by regional providers. Additionally, local partners are being enabled to run Microsoft services on their own infrastructure under favorable terms.
The company is also implementing new measures to address geopolitical risks. These include creating a European board of directors to oversee regional data center operations and integrating a binding Digital Resilience Commitment into government contracts. Building on its EU Data Boundary framework launched in early 2024, Microsoft now offers customers the ability to store and process data entirely within the EU and EFTA, using tools such as encryption, confidential computing, and user-controlled access systems.
Strengthening Cybersecurity and Regulatory Compliance
Microsoft continues to expand its cybersecurity operations across the region. A newly appointed Deputy Chief Information Security Officer for Europe will lead efforts to align with upcoming EU regulations, including the Digital Operational Resilience Act and the Cyber Resilience Act. The company’s approach includes proactive incident reporting, security-by-design practices, and third-party audits to ensure compliance.
Support for Open-Source AI and Innovation
In addition to infrastructure growth, Microsoft is reinforcing its support for open-source development and AI innovation. Its Azure AI platform now hosts over 1,800 models, many of them open-source, enabling European businesses to build and scale AI-driven solutions. This infrastructure is already being used across diverse sectors, from enterprise software to medical research.
Ongoing Commitment to Europe
This expansion reflects Microsoft’s long-term commitment to Europe’s digital ecosystem. With new infrastructure, local partnerships, and a focus on regulatory alignment, the company is positioning itself as a key player in supporting the region’s digital transformation.
