Microsoft has recently unveiled "Microsoft 365 Local," a tailored version of its cloud-based productivity suite designed to address the European Union's stringent data sovereignty and privacy regulations. This initiative ensures that European customers' data remains within EU borders, aligning with the General Data Protection Regulation (GDPR) and other local compliance requirements.
Key Features of Microsoft 365 Local:
- Data Residency: All customer data is stored and processed within the EU, mitigating concerns about data transfers to non-EU countries.
- Azure Local Integration: The suite operates on Azure Local, a variant of Microsoft's cloud platform that delivers Azure's capabilities within customers' own data centers, offering enhanced control over data management.
- Enhanced Security Measures: The introduction of "Data Guardian" ensures that only EU-based Microsoft personnel can access EU customer data. This access is subject to real-time approval and monitoring by European resident staff, with all activities logged in an immutable ledger.
- External Key Management: Microsoft plans to implement on-premises External Key Management through Azure's Managed Hardware Security Module (HSM) service. Collaborations with hardware partners like Thales and Utimaco are underway to facilitate this feature.
This development is part of Microsoft's broader commitment to data protection and compliance within Europe. In February 2025, the company completed its EU Data Boundary project, ensuring that European commercial and public sector customers can store and process their data within the EU and European Free Trade Association (EFTA) regions. This boundary applies to core cloud services, including Microsoft 365, Dynamics 365, Power Platform, and most Azure services. (blogs.microsoft.com)
Additionally, Microsoft has been expanding its data residency offerings. In June 2024, the company announced that Microsoft 365 and its associated data residency features, such as Advanced Data Residency (ADR) and Multi-Geo capabilities, became available for commercial customers in the new cloud region in Madrid, Spain. These features provide customers with greater control over the location of their cloud data, allowing them to configure where their Microsoft 365 user data is stored on a per-user basis within a single tenant. (techcommunity.microsoft.com)
Microsoft's proactive approach reflects its dedication to meeting the evolving data protection needs of European customers, ensuring compliance with local regulations, and providing enhanced control over data management.
Source: Fudzilla.com Microsoft bends the knee to EU with 365 suite
