Microsoft has recently unveiled a suite of solutions under its Sovereign Cloud initiative, aiming to bolster digital sovereignty for European organizations. This move ensures that European data remains within the continent, managed exclusively by local personnel, and provides customers with enhanced control over their data through tools like customer-controlled encryption and support for private cloud environments.
The Sovereign Cloud encompasses several new solutions, including Data Guardian, External Key Management, Regulated Environment Management, and Microsoft 365 Local. These offerings are designed to meet the stringent data residency and compliance requirements of European entities. In a blog post, Microsoft emphasized that the Sovereign Public Cloud will be available across all existing European datacenter regions, ensuring that customer data stays in Europe, under European law, with operations and access controlled by European personnel, and encryption fully under customer control. (blogs.microsoft.com)
This announcement aligns with a broader trend among European governments seeking greater control over their digital infrastructure. For instance, Denmark's Ministry of Digital Affairs recently announced plans to transition away from Office 365 and Windows 11, citing concerns over digital sovereignty. The ministry highlighted the risks of dependency on a few foreign suppliers, emphasizing the need for autonomy in public digital infrastructure. (reuters.com)
Microsoft's Sovereign Cloud initiative offers a compelling alternative for organizations aiming to maintain data independence without abandoning Microsoft services. By providing solutions that prioritize data residency and compliance, Microsoft addresses the growing demand for digital sovereignty in Europe.
In addition to the Sovereign Cloud, Microsoft has completed its EU Data Boundary project, a significant effort to enhance data residency and transparency for European customers. This initiative ensures that customer data and pseudonymized personal data for core cloud services—including Microsoft 365, Dynamics 365, Power Platform, and most Azure services—are stored and processed within the EU and European Free Trade Association (EFTA) regions. The project, completed in February 2025, reflects Microsoft's commitment to delivering cloud services that support European transparency, protect privacy, and enhance customer control. (blogs.microsoft.com)
Furthermore, Microsoft has pledged to protect its European operations from potential geopolitical disruptions. In April 2025, the company announced that it would contest any government order to cease cloud services to European customers, including through legal avenues. This commitment aims to reassure European customers of uninterrupted access to Microsoft's services, even amid geopolitical volatility. (ft.com)
These developments underscore Microsoft's proactive approach to addressing European concerns over data sovereignty and compliance. By expanding its Sovereign Cloud offerings and reinforcing commitments to data residency and operational continuity, Microsoft positions itself as a trusted partner for European organizations navigating the complexities of digital sovereignty.
Source: inkl Microsoft expands its Sovereign Cloud as Europe demands greater data control