Microsoft completes EU Data Boundary to enhance cloud data residency

Microsoft has announced the completion of its EU Data Boundary solution, allowing commercial and public sector cloud customers to store and process data exclusively within the European Union and European Free Trade Association, reports TechRepublic.

Initially launched in January 2023, the EU Data Boundary began by localizing data processing for European users of Microsoft Cloud's core services. Over the next two years, it expanded to include pseudonymized personal data and professional services data, such as support logs and case notes.

The solution can be used with Microsoft 365, Dynamics 365, Power Platform, and most Azure services, with additional steps likely required for customers seeking a professional services data storage commitment.

Microsoft noted that rare security incidents might necessitate data transfers outside the boundary. However, such transfers would include strong security measures, including encryption and strict access controls, with transparent communication to customers.

The initiative addresses long-standing regulatory concerns over data sovereignty and compliance with the General Data Protection Regulation and other European data laws. Microsoft highlighted its over $20 billion investment in European artificial intelligence and cloud infrastructure over the past 16 months, emphasizing its focus on transparency, privacy, and customer control.