Microsoft’s president, Brad Smith, has reassured European customers that the company will vigorously contest any government order to suspend its cloud operations in Europe. Speaking at a Brussels event, Smith announced the expansion of Microsoft’s data center operations across Europe, pledging to increase data center capacity by 40% over the next two years.
The commitment comes amid heightened tensions between the US and Europe, fueled by President Donald Trump’s trade policies and other administration decisions that have raised concerns about the US commitment to trans-Atlantic relationships. European customers, including governments, have been worried that these tensions could lead to service disruptions.
“What we want Europeans to know is that they can count on us,” Smith said. He emphasized that Microsoft has a history of fighting legal battles against government demands, including during the Trump and Obama administrations. In the event of an adverse ruling, Microsoft plans to implement business continuity arrangements, including storing critical code in Switzerland for access by European partners.
The expansion will involve establishing or enhancing data center operations in 16 European countries, although Smith did not specify which ones. This significant investment, costing tens of billions of dollars annually, is part of Microsoft’s five digital commitments to Europe. The move also comes as Europe considers strategies to assert its technological sovereignty by reducing reliance on major US cloud service providers like Microsoft, Amazon, and Google.
Smith acknowledged the geopolitical context, stating that Microsoft is prepared to collaborate with European companies and governments as they explore alternative options. The company’s pledge is seen as a crucial step in maintaining trust among its European customer base during a period of uncertainty in trans-Atlantic relations.
