Microsoft’s Data Sovereignty Struggles: The CLOUD Act Casts a Dark Shadow Over Europe
Microsoft is back on the data sovereignty soapbox in Europe, even though they admitted in court they can’t guarantee data won’t end up in Uncle Sam’s hands. Despite offering local AI features and expanding Azure Local, the CLOUD Act looms like a nosy neighbor with a key, keeping everyone on edge.

Hot Take:
Microsoft is playing the sovereignty card louder than a marching band at a parade, yet it’s still an American company that has to abide by American laws. In the world of data sovereignty, it seems they’re trying to have their cake and eat it too. Or perhaps they’re just playing a never-ending game of legal limbo where the bar keeps getting lower.
Key Points:
– Microsoft acknowledges it cannot guarantee European data protection from U.S. government requests due to the CLOUD Act.
– New AI-focused data processing features are being introduced within the EU Data Boundary, but only a few countries will see them by 2025.
– Microsoft is expanding its Azure Local infrastructure while still lacking full isolation capabilities until 2026.
– European tech firms and lobbyists are pushing for sovereign infrastructure alternatives to reduce dependency on U.S. cloud giants.
– Critics argue that Microsoft’s “sovereign” efforts are more about data residency than true independence from U.S. jurisdiction.
