Microsoft expands Sovereign Cloud for Europe with stronger privacy tools

Microsoft is expanding its Sovereign Cloud offering across Europe, aiming to give governments and regulated industries more control over data, compliance, and digital infrastructure.

The company has unveiled new tools, including Data Guardian, External Key Management, Regulated Environment Management, and Microsoft 365 Local—all designed to strengthen privacy and operational autonomy without sacrificing productivity or innovation.

The Sovereign Public Cloud will now support all Microsoft Cloud customers in Europe, offering services like Azure and Microsoft 365 while ensuring data stays in Europe under European law.

Data Guardian adds a layer of assurance by requiring remote access approval from Europe-based personnel. Meanwhile, External Key Management lets customers control encryption using their own hardware, and new management tools centralize policy and access oversight.

Also read: Microsoft offers free cybersecurity program to help Europe combat AI-driven threats

For organizations needing full control, Microsoft is introducing Sovereign Private Cloud, integrating Azure Local and Microsoft 365 Local to run productivity apps entirely in on-premises or partner data centers. The offering is built for governments, critical infrastructure, and highly regulated sectors.

Microsoft also continues to work with partners like Bleu in France and Delos Cloud in Germany to offer fully sovereign, nationally operated cloud services. The company is launching a new specialization for partners supporting sovereign cloud deployments as part of its AI Cloud Partner Program.

According to Capgemini’s CEO, this move marks a “pivotal moment” for Europe’s digital autonomy. Microsoft says this rollout is part of its ongoing commitment to European digital resilience, offering the broadest range of sovereignty-focused cloud solutions on the market.