Microsoft Strengthens EU Presence with Privacy Protections and Data Center Expansion

Microsoft has announced plans to significantly expand its data center capacity across Europe over the next two years, reinforcing its long-term investment in the region. Microsoft President Brad Smith also said that Microsoft is prepared to challenge the U.S. government in court, if needed, to safeguard the privacy of its European customers.

Earlier this year, the Trump administration accused EU regulators of unfairly targeting large US-based tech companies. The EU’s Digital Markets Act (DMA) aims to prevent “gatekeepers,” which include major firms like Google, Amazon, Apple, Meta, and Microsoft, from abusing their market dominance. In response, Trump signed a memorandum pledging to defend American organizations and warned of potential tariffs on the EU as retaliation for these regulatory measures.

Strengthening European cybersecurity and legal safeguards

Microsoft President Brad Smith announced that the company would take legal action if needed to protect its customers from US demands to shutdown services in the EU. He also announced plans to boost investment in Europe, strengthen data protection against legal and cyber threats, and launch new AI initiatives to support the local economy. Smith emphasized Microsoft’s ongoing commitment to complying with European laws.

“Our economic reliance on Europe has always run deep. We recognize that our business is critically dependent on sustaining the trust of customers, countries, and governments across Europe,” Smith explained. “We respect European values, comply with European laws, and actively defend Europe’s cybersecurity. Our support for Europe has always been — and always will be — steadfast. In a time of geopolitical volatility, we are committed to providing digital stability.”

Microsoft updates EU agreements for digital resilience

Microsoft stated that its European data center operations will be overseen by a board of directors made up of European nationals. The company has also introduced a new European Digital Resilience Commitment in all contracts, which includes provisions to resist any demands to shut down its operations in Europe.

Additionally, Microsoft plans to expand its data center operations in 16 European countries. “When combined with our recent construction, the plans we’re announcing today will more than double our European data center capacity between 2023 and 2027,” he said. “It will result in cloud operations in more than 200 data centers across the continent.” Smith added.

Lastly, Microsoft highlighted its commitment with European cloud providers to host its apps and services on local cloud infrastructure. This initiative includes building new licensing solutions tailored for European providers, which is part of a settlement with the Cloud Infrastructure Service Providers in Europe (CISPE) to address previous antitrust complaints. These efforts should help Microsoft comply with local regulations to ensure competitive practices in the digital market.