Microsoft’s European charm offensive: Real change or just words?

Microsoft is pulling out all the stops to keep the trust of European governments and businesses. But is this charm offensive just about nice promises, or are there real guarantees behind the rhetoric? 

In recent months, data sovereignty and European digital independence have been in the spotlight like never before. Microsoft’s response? 4 new commitments, announced by President Brad Smith, aimed squarely at addressing European concerns about data security, digital rights and legal protection. 

Here’s what Brad Smith has promised: 

1. Respect for European law: Microsoft commits to aligning all its customer contracts with European legislation, covering not just data privacy but broader digital rights and regulatory obligations. 

2. Defending customers in legal disputes: If these legal commitments are challenged, Microsoft promises to stand by its European customers in court, defending the integrity of these agreements to the fullest extent possible. 

3. Operational continuity after legal losses: Should Microsoft lose a legal battle, they’ll ensure European customers can keep their data and applications running autonomously. Data centres in Germany and France, operated by trusted partners like SAP and Capgemini, would be able to continue operations independently. 

4. Supporting Europe’s digital sovereignty: Finally, Microsoft says it will actively support Europe’s push for digital independence, including greater transparency around how data is stored and processed, and more European control over digital infrastructure. 

Even with these new commitments, there remains a healthy dose of scepticism in Europe. Many regulators and privacy advocates question whether promises alone can truly address the risks that US cloud providers face under laws like the Cloud Act. This pushback highlights the need for clear, enforceable guarantees to protect European data – beyond just goodwill and contractual language. 

EU Data Boundary: Real impact or more promises?

One of the most tangible parts of this strategy is the EU Data Boundary. This initiative ensures that personal data of EU citizens stays entirely within the EU’s borders. For instance, data from a Dutch company would be processed and stored in data centres physically located within the EU, with no data flowing across the Atlantic. Microsoft is also promising advanced encryption and local support teams that stay within Europe – a big reassurance for companies dealing with sensitive information. 

However, questions remain.  

For example, recent concerns were raised that Azure’s metadata might not fully adhere to the EU Data Boundary, sparking further debate about Microsoft’s compliance efforts. This illustrates how sovereignty is a complex challenge that extends beyond just one initiative or promise. 

How to strengthen sovereignty on Azure 

At Nordcloud, we’re following these developments closely. Microsoft’s commitments – from contractual alignment to sovereign hosting in Europe – create a strong starting point. But we also know that real-world sovereignty isn’t just about promises on paper. It’s about practical, architecture-led solutions that align with your specific data, risks, and compliance needs. 

Here’s what your organisation can do today to strengthen sovereignty while still leveraging the power of Azure: 

1. Start with a risk-based approach 
   Not all data or workloads require the same level of sovereignty. Begin by answering: 
   • What data do we store and process? 
   • Where are the legal, regulatory and reputational risks? 
   • Who are the stakeholders that define “sovereignty” for us? 
   Nordcloud can help you conduct a risk analysis that classifies workloads, identifies regulatory exposure and aligns decisions with business priorities. 

2. Leverage Microsoft’s sovereignty tools – strategically 
   Microsoft provides a strong set of technical and operational tools - from Azure confidential computing to Key Vault Managed HSM with customer-controlled keys. But these tools only work if they’re integrated properly. We help you design and optimise these features for real-world impact, not just theoretical compliance. 

3. Consider hybrid, multi-cloud and European integration 
   For high-sensitivity workloads, consider: 
   • Segmenting critical workloads into sovereign EU environments 
   • Retaining control of keys via external key management or hybrid cloud models 
   • Using multi-cloud architectures to diversify infrastructure and reduce vendor dependency 
   Nordcloud specialises in cloud-agnostic, sovereignty-conscious design, helping you build resilience while staying flexible. 

4. Build visibility and control 
   Sovereignty also means knowing what’s happening in your cloud: 
   • Use observability tools to monitor data movement, access and anomalies 
   • Implement Zero Trust frameworks to reduce internal attack surfaces 
   • Regularly review your cloud compliance posture — not just once, but continuously 
   Our advisory and security practices specialise in making your cloud implementation secure and proportionate to your business and compliance needs. 

More than just words 

Microsoft’s sovereignty commitments are a step in the right direction – not just in meeting legal obligations, but in reshaping how global cloud providers operate in Europe. They create a foundation for organisations seeking regulatory alignment and operational trust. 

But sovereignty isn’t a checkbox, it’s a journey. Legal, technical and strategic considerations must all align. With careful planning, smart architecture and the right partners, you can harness the benefits of hyperscale cloud while retaining control. 

We’re here to help you walk that path – with clarity, control and confidence. Ready to assess your sovereignty posture? Contact us now to arrange a working session on cloud sovereignty.