Microsoft Expands European Cloud and AI Infrastructure, Pledging Digital Resilience Amid Geopolitical Tensions

Microsoft to expand European cloud and AI in new commitments

In the face of persistent transatlantic tensions, Microsoft is attempting to reassure European customers with a range of measures to support European 'digital resilience'. Tech giant Microsoft has announced five digital commitments to Europe, including support for European cloud and AI infrastructure, data privacy and cybersecurity. In a blogpost penned by Microsoft vice-chair and president Brad Smith, a number of measures were revealed as part of Microsoft's commitment to upholding European digital resilience "regardless of geopolitical and trade volatility". These commitments come as the administration of US president Donald Trump continues to strain ties with the EU through recent actions such as tariffs and persistent suggestions of acquiring Greenland. "As a multinational company, we believe in transatlantic ties that promote mutual economic growth and prosperity," wrote Smith. "We were pleased the Trump administration and the European Union recently agreed to suspend further tariff escalation while they seek to negotiate a reciprocal trade agreement. "We hope that successful talks can resolve tariff issues and reduce non-tariff barriers." The first of Microsoft's commitments details an expansion of Europe's cloud and AI ecosystem, which includes plans to increase European data centre capacity by 40pc over the next two years. According to Smith, the tech giant will expand data centre operations in 16 European countries. Microsoft's second commitment consists of a promise to "uphold Europe's digital resilience", even in the face of "geopolitical volatility". As part of this promise, the company is instating a board of directors to oversee its European data centre operations. This board will be exclusively made up of European nationals and will operate under European law, according to Smith. The company also declared its intention to fight any governmental order to suspend or cease cloud operations in Europe - including through litigation - should such an order arise. Another of the tech giant's digital commitments entails promise to protect European data privacy through means such as the recently implemented EU Data Boundary project, which allows European customers to have their data stored and processed in Europe. The company also plans to "further strengthen and expand solutions" that allow European customers to control and protect their data. Microsoft's fourth commitment, as revealed by Smith, includes new measures to support European cybersecurity capabilities. As part of these measures, Microsoft will be appointing a new deputy chief information security officer to oversee the company's cybersecurity activities on the continent. Smith also wrote that Microsoft will work on improving compliance with the EU's Cyber Resilience Act. Finally, the company's fifth commitment intends to "strengthen European competitiveness", which includes continued support for open-source development through its AI Azure platform. The US and the EU have butted heads frequently as of late, particularly in relation to EU regulations and how they affect Big Tech. Just last week, the White House stated that fines recently imposed on Apple and Meta by the European Union were a "novel form of economic extortion", and that the US would not tolerate them. Despite the strained relations, Microsoft seems to be doubling down on its European connections. "More than ever, it will be critical for us to help Europe harness the power of this new technology to strengthen its competitiveness," wrote Smith. "As we celebrated Microsoft's 50th birthday earlier this month, we recognised that our longstanding presence in Europe has been a lynchpin of our success. Europe has treated us well. "Our support for Europe has always been - and always will be - steadfast." Don't miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic's digest of need-to-know sci-tech news.

Microsoft Touts EU Data Center Expansion, Pledges to Protect European Operations -- 2nd Update

Microsoft plans to build out its cloud and artificial-intelligence operations in the European Union, including with an expansion of its data-center network, as businesses in the bloc pressure policymakers to protect EU tech sovereignty. The U.S. technology giant said Wednesday that it plans to increase its data-center capacity within the EU over the next two years, with a view to having cloud operations in more than 200 data centers across the region. "Like electricity and other general purpose technologies in the past, AI and cloud data centers represent the next stage of industrialization," the company said in a blog post. Speaking at an event in Brussels on Wednesday, Microsoft's President Brad Smith tackled growing concerns across the bloc around using cloud software produced by U.S.-headquartered companies since President Trump took office. Some are worried that, should a trade war between the EU and U.S. escalate, Trump could retaliate by ordering U.S. firms to cut off their services in the region. "I regard that as exceedingly unlikely to ever happen," Smith said but added that the company is prepared to challenge any government that asks it to suspend its cloud services in the EU. "Our business relies on the trust of our customers, without that it starts to decline and dissipate," he said. Microsoft said it already partners with smaller European cloud providers and is developing new technology and licensing solutions tailored for them and the markets they serve. Businesses in the bloc are increasingly seeking ways to wean off depending on cloud services provided by dominant firms like Amazon, Microsoft and Google amid rising tensions with the U.S. and potential data-security risks. A group of close to 100 European companies including Airbus and French cloud provider OVHCloud wrote to European Commission president Ursula von der Leyen and tech chief Henna Virkkunen last month calling for the EU executive to formally require public-sector bodies across the region to buy from European-led sources when investing in new technologies. "Given recent geopolitical volatility, we recognize that European governments likely will consider additional options," Microsoft said. The company's European data-center operations will be overseen by a board of directors made up of European nationals, Microsoft's blog post said. Speaking a press conference after the event, Smith argued that tech sovereignty shouldn't necessarily mean all tech services being provided only by European companies. "There are different approaches to how to save the protection of technology sovereignty," Smith said. While one would be to rely on a European company for tech solutions, another says "there is technology sovereignty if it is governed by European laws and rules," he said. "Fundamentally, we're big advocates of the second approach," he said.