Microsoft Strengthens Europe's Control Over Cloud Data

Microsoft wants to give its European customers more control over their data — a plan in which a German mid-sized company from Aachen plays a central role. The US tech giant has announced a new data protection concept for Europe that offers varying levels of data sovereignty. As part of this initiative, Microsoft is relying in part on hardware from security specialist Utimaco. The manufacturer of encryption technology is expected to help ensure that customer data remains exclusively under European control.
At the core of the initiative is a three-tiered system for operating cloud services. In the most advanced stage, the so-called "Sovereign Private Cloud," Microsoft services are run either in customers’ own data centers or at partner facilities. Alternatively, customers can use Microsoft data centers located in Europe, with access and operations handled by EU personnel. A third option is specifically tailored to government agencies and operators of critical infrastructure. In this model, only nationally approved partners may be used — designated by the respective government. In Germany, the selected provider is Delos Cloud, a subsidiary of SAP.
A key component of the concept is the encryption of data. Microsoft announced that companies will in future be able to use their own cryptographic keys to protect their information. These keys are to be stored on hardware security modules, provided in part by Utimaco. This means encryption remains entirely in the hands of the customers — Microsoft itself would have no access to the data. CEO Satya Nadella stated that the company aims to address European concerns with a "European cloud model."
The new offering comes amid rising tensions between Europe and the United States. Particularly in connection with the use of US-based cloud technologies, security concerns have recently been growing in Europe. One trigger was a case involving the email account of the chief prosecutor of the International Criminal Court in The Hague. This account had been blocked by Microsoft after the US government under President Donald Trump imposed sanctions on the court. The move followed arrest warrants issued by ICC judges against the Israeli Prime Minister Benjamin Netanyahu and his former defense minister Yoav Gallant over alleged war crimes in the Gaza Strip.
