Microsoft to Store and Process EU Data in the EU
Microsoft announced a new pledge for the European Union. If you are a commercial or public sector customer in the EU, Microsoft will go beyond existing data storage commitments and enable you to process and store all your data in the EU.
Microsoft already begun engineering work so the core cloud services will both store and process in the EU all personal data of our EU commercial and public sector customers, if they so choose. This plan includes any personal data in diagnostic data and service-generated data, and personal data used to provide technical support. Microsoft will also extend technical controls such as Lockbox and customer-managed encryption for customer data across Microsoft core cloud services.
Source: Answering Europe’s Call: Storing and Processing EU Data in the EU – EU Policy Blog