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The Israeli Defense Forces' (IDF) Unit 8200, renowned for its intelligence-gathering capabilities, has reportedly utilized Microsoft's Azure cloud platform to amass and analyze vast amounts of data on Palestinians. This collaboration has raised significant ethical and legal questions regarding surveillance, data privacy, and the role of multinational corporations in military operations.

Background​

Unit 8200 serves as Israel's primary signals intelligence unit, comparable to the United States' National Security Agency (NSA). Its responsibilities include intercepting electronic communications, code decryption, and cyber operations. The unit's extensive surveillance activities have been a subject of controversy, particularly concerning the monitoring of Palestinian communications.

The Collaboration with Microsoft Azure​

In late 2021, a meeting between Yossi Sariel, then head of Unit 8200, and Satya Nadella, CEO of Microsoft, set the stage for a significant partnership. Following this meeting, Unit 8200 began migrating substantial amounts of data to Microsoft's Azure cloud platform. By July 2025, approximately 11,500 terabytes of Israeli military data, equivalent to about 200 million hours of audio, were stored on Azure servers located in the Netherlands and Ireland. This data primarily consists of recordings of phone calls by Palestinians in the West Bank and Gaza. (arabnews.com)
The scale of this operation is underscored by the unit's ambition to "capture and store up to a million calls an hour." To achieve this, Microsoft and Unit 8200 engineers collaborated to implement advanced security measures within Azure, ensuring the platform met the unit's stringent standards. The project was highly secretive, with Microsoft staff instructed not to mention Unit 8200 by name. (972mag.com)

Implications of the Surveillance​

The integration of Azure into Unit 8200's operations has reportedly facilitated more efficient data analysis, enabling the identification of potential targets for airstrikes and other military operations. Intelligence sources indicated that the cloud platform made it easier to prepare airstrikes and other operations in Gaza and the West Bank. The vast storage capacity allowed for the retention and analysis of a billion recordings in a single hour, significantly enhancing the unit's surveillance capabilities. (arabnews.com)
However, this extensive surveillance has raised ethical concerns. The indiscriminate collection of communications data from millions of Palestinians has been described as intrusive, effectively turning an entire population into subjects of surveillance. Critics argue that such practices violate privacy rights and could be used to blackmail individuals, detain them, or justify killings. (arabnews.com)

Microsoft's Response​

Microsoft has stated that it was not aware of the specific uses of its Azure platform by the IDF. The company emphasized that its engagement with Unit 8200 was based on strengthening cybersecurity and protecting Israel from nation-state and terrorist cyberattacks. Microsoft's spokesperson asserted that at no time during the engagement was the company aware of the surveillance of civilians or the collection of their cellphone conversations using Microsoft's services. (972mag.com)
Despite these assurances, internal and external reviews commissioned by Microsoft found no evidence that its technologies were used to harm civilians. However, the company acknowledged the limitations of its visibility into how customers use its software on their own servers or devices. This lack of transparency has fueled skepticism among critics and human rights organizations. (geekwire.com)

Employee and Public Backlash​

The revelations have sparked significant backlash from Microsoft employees and the public. In April 2025, during Microsoft's 50th Anniversary Copilot Event, an employee named Ibtihal Aboussad interrupted the live stream to protest the company's alleged involvement in the Israeli military's operations in Palestine. Aboussad accused Microsoft of complicity in what she described as the genocide of Palestinians, citing the use of Microsoft AI and cloud services by the Israeli military for surveillance and targeted attacks. (windowscentral.com)
Following the protest, Microsoft fired two employees who had organized an unauthorized vigil at its Redmond headquarters to honor Palestinians killed in the Gaza war. The employees were part of the group "No Azure for Apartheid," which advocates for the company to cut ties with Israel. This group is part of the larger "No Tech for Apartheid" movement, highlighting the growing internal dissent within tech companies over their involvement in global military conflicts. (en.wikipedia.org)

Broader Implications​

The collaboration between Unit 8200 and Microsoft underscores the complex relationship between technology companies and military operations. While cloud platforms like Azure offer unparalleled storage and processing capabilities, their use in surveillance and military contexts raises profound ethical and legal questions. The lack of transparency and oversight in such collaborations can lead to unintended consequences, including potential violations of human rights and international law.
As technology continues to evolve, the role of multinational corporations in military and intelligence operations will likely face increased scrutiny. Ensuring that technological advancements are used responsibly and ethically remains a critical challenge for both the private sector and governments worldwide.

Source: Globes - Israel Business News Israel uses Microsoft Azure to spy on Palestinians - report