Microsoft CEO: European Data Stays in Europe - Microsoft tightens data controls to ease EU fears over AI and security risks
Microsoft has announced new measures to address European concerns over data security and AI development. The company's Germany chief, Agnes Heftberger, highlighted the need for trust as the foundation for wider AI adoption across the continent.
The moves come amid growing unease about U.S. tech firms' access to European data, particularly under foreign surveillance laws. Microsoft's latest steps aim to reassure businesses and regulators by offering stronger controls over sensitive information.
European authorities and companies have long worried about data stored on U.S.-based servers being accessible to American intelligence agencies. These fears have pushed Microsoft to introduce stricter safeguards, including encryption and physically separated private cloud solutions. Customers will now have what the company calls 'sovereign control' over their data and applications.
CEO Satya Nadella has personally assured European partners that their data will remain secure. The company will also share its cyber threat intelligence with regional customers, helping them defend against potential breaches. Another key change is the upcoming 'Foundry' service, which allows AI development to take place on local systems instead of relying solely on iCloud infrastructure.
The European Union has already taken steps to tighten data governance. By October 2025, the SEAL framework will assess sovereign cloud services, while a €180 million tender for sovereign cloud computing is underway. The EU Data Act expands access rights, and amendments to the DSGVO are being proposed through the Digital Omnibus Package. The EU AI Act, fully enforceable from August 2026, will further regulate AI systems. However, member states remain divided: France advocates for strict European-only solutions, while Nordic, Baltic, and Dutch governments prefer risk-based approaches.
Microsoft's new measures align with industry responses to these regulations. The company's sovereign controls and AWS's European Sovereign Cloud reflect a broader push to meet local compliance demands.
Microsoft's updates give European customers more direct control over their data and AI tools. The company's encryption and local processing options aim to reduce reliance on U.S.-based iCloud infrastructure. These changes arrive as the EU strengthens its own data and AI rules, setting clearer boundaries for tech firms operating in the region.
