Microsoft President Brad Smith Expands European Cloud Infrastructure, Commits to New Digital Standards

Microsoft President Brad Smith has announced a landmark set of digital commitments aimed at strengthening the company’s relationship with Europe, expanding its cloud and AI infrastructure, and reinforcing its respect for European laws and values. The announcement, made via an official blog post and a keynote speech in Brussels on April 30, 2025, comes at a time of heightened geopolitical tension and regulatory scrutiny of U.S. tech giants operating in the European Union (EU).

A Deep-Rooted Partnership with Europe

Microsoft President Brad Smith began by reflecting on Microsoft’s 42-year history in Europe, recalling the launch of the first localized version of Microsoft Word in German and French. This milestone, he noted, marked the start of a long-standing economic and technological partnership with the continent-a relationship now more critical than ever as Europe seeks to harness the next wave of digital innovation.

Five Pillars of Microsoft’s European Commitment

Microsoft President Brad Smith’s blog post outlined five core commitments:

1. Building a Broad AI and Cloud Ecosystem: Microsoft will increase its European datacenter capacity by 40% over the next two years, expanding operations in 16 countries. This expansion, combined with recent investments, will more than double the company’s datacenter footprint in Europe between 2023 and 2027, resulting in over 200 datacenters across the continent. The goal is to support Europe’s economic competitiveness, enable innovation across industries, and ensure data remains subject to European laws and regulations.
2. Upholding Europe’s Digital Resilience Amid Geopolitical Volatility: Responding to concerns about U.S.-EU tensions and the dominance of American tech firms, Smith pledged that Microsoft’s European cloud operations would be overseen by a board of directors composed entirely of European nationals and governed by European law. In a direct response to fears that U.S. government actions could disrupt European data access, Smith announced a legally binding “Digital Resilience Commitment.” If any government orders Microsoft to suspend its European cloud services, the company will “promptly and vigorously contest such a measure using all legal avenues available, including by pursuing litigation in court.”
3. Protecting the Privacy of European Data: Microsoft reaffirmed its dedication to data privacy, emphasizing its EU Data Boundary project, which allows European customers to store and process their data entirely within the EU and EFTA regions. The company also offers advanced encryption, customer-controlled access, and “lockbox” solutions to ensure data sovereignty. Smith highlighted Microsoft’s track record of challenging government demands for data access that conflict with European law, including taking cases to the U.S. Supreme Court and securing legislation to protect European data.
4. Defending Europe’s Cybersecurity: Smith cited Microsoft’s support for Ukraine during the 2022 conflict as an example of its commitment to digital resilience. The company relocated Ukraine’s critical data to European datacenters and provided over $500 million in technology and financial aid. Microsoft is appointing a new Deputy Chief Information Security Officer (CISO) for Europe and will engage with stakeholders to meet the requirements of transformative regulations like the Digital Operational Resilience Act (DORA) and the Cyber Resilience Act (CRA).
5. Strengthening Europe’s Economic Competitiveness, Including for Open Source:
   Microsoft’s AI Access Principles ensure open access to its AI and cloud platforms for European businesses, including support for open-source models and the elimination of data transfer fees for customers switching providers. The company is partnering with European startups, enterprises, and research institutions to drive innovation in sectors ranging from healthcare to finance.

A Commitment Amid Regulatory and Political Tensions

Microsoft President Brad Smith’s announcement comes as the European Union intensifies regulation of Big Tech, recently fining Apple and Meta nearly $800 million for violations of the Digital Markets Act. Microsoft, which has faced its own EU antitrust investigations, is seeking to demonstrate proactive compliance and partnership with European authorities.

Microsoft President Brad Smith’s message stands in contrast to recent criticism from the U.S. administration regarding EU regulations, positioning Microsoft as a bridge-builder between continents. “We recognize that European regulations govern our operations in Europe, just as local laws dictate practices in the United States,” Smith stated, reaffirming the company’s respect for local legal frameworks even when disagreements arise.

Looking Forward: Trust, Collaboration, and Innovation

Microsoft’s new commitments are designed to reassure European customers, governments, and partners that the company is invested in the continent’s digital future-not just through technology, but through trust, legal accountability, and respect for sovereignty. As Microsoft President Brad Smith concluded, “Our support for Europe has always been-and always will be-steadfast.”

Things to Remember

1. Microsoft will expand its European datacenter capacity by 40% over two years, with operations in 16 countries and more than 200 datacenters across the continent.

2. Oversight of European datacenter operations will shift to a board composed entirely of European nationals, governed by European law.

3. Microsoft has made a legally binding “Digital Resilience Commitment” to challenge any government order to halt or terminate cloud operations in Europe, using all legal avenues, including litigation.

4. Microsoft will designate European partners for operational continuity and store backup copies of its code in Switzerland, granting partners legal rights to access and use the code if needed for business continuity.

For more insights and the full text of Microsoft President Brad Smith’s announcement, visit Microsoft’s official blog.