Microsoft pledged to expand its European data centre capacity by 40% over the next two years, targeting operations in 16 EU countries, as part of a strategic push to stabilise strained US-EU relations, Politico reported.
Announced during a high-profile visit to Brussels by Microsoft President Brad Smith, the initiative aligns with the European Commission’s goal to triple the bloc’s data infrastructure to compete in the global AI race.
Smith positioned Microsoft as a mediator in escalating tech policy clashes, emphasising compliance with EU regulations such as the Digital Markets Act (DMA).
We understand that European laws apply to our business practices in Europe, just as local laws apply to local practices in the United States.
The expansion includes hyperscale cloud infrastructure and AI training partnerships, such as a $700 million deal with Poland to bolster cybersecurity and defence capabilities.
However, the move faces scepticism from advocates of European tech sovereignty. French cloud provider OVHCloud warns that even locally hosted data risks exposure to US surveillance under laws like the CLOUD Act, citing cases where Microsoft withheld data from European courts due to sanctions.
The investment comes amid heightened EU concerns over Donald Trump’s trade policies, including threats to impose 100% levies on nations abandoning the US dollar. While Microsoft’s pledge to store EU data within regional boundaries aims to assuage privacy fears, experts like Dutch technologist Bert Hubert caution that geopolitical shifts could leave Europe vulnerable if US firms prioritise Washington’s demands over European partners.
