Microsoft Grows AI-ready Data Centre Network Across Europe

As demand for trusted digital infrastructure grows, Microsoft sets out a powerful new direction for its role in Europe's data future.

In response to increasing regulatory pressure, shifting geopolitical dynamics and a deepening need for digital sovereignty, the company unveils five concrete pledges designed to align its operations more closely with European values, law and governance.

In a company blog, Microsoft Vice Chair and President Brad Smith, explains: “As a multinational company, we believe in trans-Atlantic ties that promote mutual economic growth and prosperity. ​

“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, consistent with the recommendations in the recent Draghi report.

“We will always be dedicated to creating jobs, promoting economic opportunities, and strengthening cybersecurity on both sides of the Atlantic. The five commitments below, like the very first European version of Microsoft Word, take our support for Europe another step forward.”

Strengthening Europe's AI and cloud backbone

At the heart of the announcement is a 40% expansion of Microsoft’s European data centre capacity over the next two years.

These facilities form the backbone of the company’s AI and cloud computing services, which have become essential for government, public sector and enterprise users across the continent.

Between 2023 and 2027, Microsoft will double its data centre footprint in Europe. Additionally, new builds and upgrades are planned across 16 countries, helping to create a more diversified and resilient digital ecosystem.

These facilities will not only support wider cloud computing access but will also underpin regional industrial innovation and AI adoption.

In France, Microsoft has already formed Bleu, a sovereign cloud joint venture with Capgemini and Orange. This initiative will offer Microsoft 365 and Azure services while remaining fully under French control.

Germany is also a focus, as Microsoft has partnered with Arvato Systems and SAP on a sovereign data centre model led by SAP subsidiary Delos Cloud GmbH.

Based in Germany and operated by German personnel, the platform aims to serve the country’s public sector with data services that are compliant, secure and autonomous.

All these moves signal a clear direction: AI and digital services must be built on trusted, localised infrastructure.

Legal frameworks and digital sovereignty at the centre

Microsoft’s second core pledge concerns legal resilience.

The company commits to embedding sovereignty into the structure of its European operations, starting with the creation of a new European board of directors made up exclusively of European nationals.

This board will oversee regional data centre activity and ensure closer alignment with national laws and regulatory frameworks.

A legally binding “Digital Resilience Commitment” will be included in all contracts with the European Commission and national governments.

It provides protection against foreign government orders that might seek to interfere with or suspend Microsoft cloud services in Europe.

This commitment reinforces Microsoft’s position on maintaining service continuity and protecting the legal autonomy of the continent’s digital infrastructure.

Through these legal measures, Microsoft aims to secure control over data flows, safeguard public services and uphold digital trust.

Reinforcing cybersecurity across the continent

Microsoft’s third focus is cybersecurity.

The scale and complexity of global cyber threats continue to grow, prompting the company to increase its European cybersecurity presence and oversight.

It has already contributed more than US$500m in technology and financial assistance since the conflict in Ukraine began. This support has included securing elections, blocking malicious campaigns and protecting vital digital systems for NATO and Ukraine.

To increase local oversight, Microsoft is appointing a European Deputy Chief Information Security Officer.

This executive will be responsible for overseeing compliance with EU legislation, including the NIS 2 Directive, the Digital Operational Resilience Act (DORA) and the Cyber Resilience Act (CRA).

They will report directly to Igor Tsyganskiy, Microsoft’s Global Chief Information Security Officer.

Microsoft has also committed to strengthening compliance with the CRA by investing in secure development practices, vulnerability reporting processes and open-source software security.

It will continue to collaborate with the European Commission through its Secure Future Initiative and contribute to the Expert Group on Cybersecurity of Products with Digital Elements.

A benchmark for cloud and AI leadership

Microsoft’s strategy offers a clear example of how large global providers can adapt to meet European expectations for AI readiness, infrastructure investment and digital independence.

The move is also a recognition that future growth in AI and cloud services depends on local trust.

By expanding data centre capacity, building in legal sovereignty and boosting cybersecurity, Microsoft is working to become a long-term digital partner to Europe.

As the EU refines its legal and ethical approach to AI, cloud infrastructure and data protection, Microsoft positions itself as an organisation willing to meet the continent on its terms.

Explore the latest edition of AI Magazine and be part of the conversation at our global conference series, Tech & AI LIVE. 

Discover all our upcoming events and secure your tickets today. 

AI Magazine is a BizClik brand