Microsoft wants to ally itself with Europe: What's behind the billion-dollar investment?

Florian Bodoky

2.5.2025

Translation: machine translated

While the US tech bubble gathers around Donald Trump and endears itself to him, Microsoft is taking a different approach. They want to invest billions in European infrastructure and data centres - and promise to support European sovereignty. What is behind this?

There is a crisis in the relationship between the USA and Europe. Tariffs, isolationism and no clear commitment from the US to the EU-US data agreement - all of this is causing major concerns in Europe with regard to cyber security. This is because dependence on US infrastructure and concerns about Trump's political influence are weighing on business.

Microsoft is now unexpectedly going on the offensive: In its own blog, President Brad Smith announced investments in Europe's tech infrastructure. Microsoft wants to contribute a double-digit billion sum per year. He also made concrete commitments to Europe's digital sovereignty.

Billions invested in cloud and AI

In the next two years, Redmond plans to expand its data centres in Europe by 40 per cent - including in Germany, France and several Scandinavian countries. There are to be over 200 data centres by the end of 2027. Of course, this is not being done out of pure sympathy and charity: the demand for cloud services and AI infrastructure in Europe is immense. The continent is lagging behind both the USA and China.

Although the EU Commission is planning to triple its own data centre capacity by 2030, the help of companies such as Microsoft is more than welcome. Microsoft is not doing this alone from faraway Redmond, but together with European partners: the software giant SAP and the IT consulting company Capgemini from France are also involved. Microsoft is also investing money in European cloud solutions such as «Delos» - giving the company a little control.

For a peaceful night's sleep: storage location Europe

Microsoft also promises to store European data exclusively within the EU and EFTA states in future. Additional encryption options will even prevent Microsoft itself from accessing customer data. Only customers themselves would then be able to access their data. This would also allow them to circumvent the Cloud Act.

Backups of the cloud codes are stored on Swiss servers (Zurich and Geneva). Microsoft intends to continue this procedure even if the US government wants to take legal action against it, according to the promise.

Local authorities will also be allowed to check the updates before they are rolled out so that no backdoor can be installed. European legislation is also to be complied with at all times. To this end, Microsoft wants to appoint a European CISO (Chief Information Security Officer) who will keep an eye on compliance with the GDPR and other laws.

Critical voices criticise the fact that Microsoft's European offensive is purely economically motivated. Redmond generated around a quarter of its 2024 turnover in Europe (around 62 billion US dollars). In addition, Microsoft is presenting itself as the voice of reason, while other tech bros such as Zuckerberg, Musk and Cook are ranting about EU regulations and playing a cat-and-mouse game in terms of moderation, market power and pricing. One thing is clear: as long as Microsoft and other US companies provide the basic technology and control the supply chains, technological sovereignty is wishful thinking.

Florian Bodoky

Editor

Florian.Bodoky@digitecgalaxus.ch

I've been tinkering with digital networks ever since I found out how to activate both telephone channels on the ISDN card for greater bandwidth. As for the analogue variety, I've been doing that since I learned to talk. Though Winterthur is my adoptive home city, my heart still bleeds red and blue. more

These articles might also interest you