Microsoft 365 Local Comes to European Customers

Microsoft is strengthening its digital sovereignty solutions across Europe, providing customers with greater control, enhanced privacy, and improved resilience. The initiative includes both public and private cloud offerings, specifically designed to meet the region’s complex regulatory and operational requirements.

Addressing data privacy and EU regulations

European companies and governments are increasingly worried that when their data is stored or processed outside the EU, especially in countries like the United States. The General Data Protection Regulation (GDPR) in the EU sets strict rules about how personal data can be transferred outside the EU.

Microsoft’s new offering builds on its earlier commitment in April to invest in building or expanding data centers in 16 European countries. The company aims to foster an AI innovation ecosystem and collaborate more closely with European cloud providers.

Microsoft introduces new sovereign tools for compliance

Microsoft has introduced new sovereign tools to give European organizations greater control over their data and compliance. Data Guardian enhances data protection by ensuring that sensitive information is handled according to local regulations. External Key Management also allows customers to manage their encryption keys to keep control over data access.

Regulated Environment Management is designed to simplify the setup and maintenance of compliant environments, especially for industries with strict regulatory requirements. Microsoft 365 Local also brings productivity tools (such as Microsoft Teams and Word) into private cloud environments to ensure data residency and operational sovereignty. These tools collectively support digital autonomy and regulatory alignment across Europe.

Microsoft’s sovereign cloud solutions

Microsoft’s Sovereign Cloud includes three key solutions: Sovereign Public Cloud, Sovereign Private Cloud, and National Partner Clouds. The Public and Private Cloud offerings are currently in preview and are expected to become generally available later in 2025.

The Sovereign Public Cloud is an evolution of Microsoft Cloud for Sovereignty. It helps to ensure that data stays within national borders and is governed by local laws, with operations handled by EU personnel. Sovereign Public Cloud supports services like Azure, Microsoft 365, and Power Platform without requiring data migration.

The Sovereign Private Cloud is designed for highly regulated or critical workloads. This solution offers isolated or hybrid environments with enhanced control and compliance, including Microsoft 365 Local and Azure Local.

Moreover, the National Partner Clouds are designed for government and critical infrastructure. They are operated by trusted local partners (e.g., Bleu in France, Delos Cloud in Germany). These clouds offer sovereign infrastructure tailored to national requirements.

Sovereign cloud specialization and trusted partners

The Microsoft Sovereign Cloud Specialization is currently available in preview in the Microsoft AI Cloud Partner Program. It’s aimed at helping European customers identify partners with expertise in delivering sovereign cloud solutions. This specialization helps European organizations find trusted providers who can implement Microsoft’s sovereign offerings while meeting strict data residency, privacy, and regulatory standards.

Microsoft notes that partners with this specialization have demonstrated strong technical expertise and a deep understanding of compliance requirements in highly regulated environments. The list of preview partners includes Accenture, Arvato Systems, Atea, Atos, Crayon, Capgemini, Dell Technologies, IBM, Inspark, Infosys, Lenovo, Leonardo, NTT Data, Orange, Telefonica and Vodafone.