News & Insights

Microsoft Completes EU Data Boundary – With Exceptions

In March 2025, Microsoft announced the completion of its EU Data Boundary project. Customer data from services such as Azure, Microsoft 365, and Dynamics 365 will now be stored and processed exclusively within the EU. However, there are exceptions: certain security-related data, diagnostics, and analytics may still be processed outside the EU.

The initiative was rolled out in three phases, now covering not only customer and pseudonymized data but also professional services data such as support logs and case notes. However, Microsoft noted that for rare security-related situations, data may still be transferred outside the EU—with robust protections in place.

This commitment reflects Microsoft’s strategy to enhance data sovereignty, transparency, and privacy for European customers—an important response to tightening EU data protection pressures and global regulatory scrutiny. By anchoring data within European infrastructure, Microsoft aims to provide stronger assurances to its business and public sector clients in the region.

Nonetheless, caution remains among privacy experts. Some note that under U.S. legislation—such as the Cloud Act—data may still be accessed by U.S. authorities regardless of its physical location. Thus, while the EU Data Boundary bolsters compliance and control, it may not fully eliminate jurisdictional vulnerabilities. https://blogs.microsoft.com/on-the-issues/2025/02/26/microsoft-completes-landmark-eu-data-boundary-offering-enhanced-data-residency-and-transparency/?utm_source=chatgpt.com