Microsoft pledges to protect its European operations

Microsoft promised on Wednesday to legally defend its European operations against any government interference, addressing mounting concern among European customers about potential service disruptions amid escalating transatlantic trade tensions.
Brad Smith, Microsoft's president, announced on Wednesday the company would "promptly and vigorously contest" any governmental orders to suspend its European cloud services, highlighting Microsoft's position as a mediating force amid growing transatlantic friction.
"What we want Europeans to know is that they can count on us," Smith said at an event in Brussels, Belgium where he unveiled plans to expand Microsoft's European presence significantly.
The technology giant's commitment comes at a crucial moment with relations between the European Union and the United States strained under US President Donald Trump's administration, particularly regarding digital regulation and trade policies.
The announcement followed recent EU fines totaling $700 million against Meta and Apple for breaching the bloc's Digital Markets Act.
To reinforce its European commitment, Microsoft announced it would increase its data center capacity by 40 percent during the next two years, expanding operations across 16 European countries.
"When combined with our recent construction, the plans we're announcing today will more than double our European datacenter capacity between 2023 and 2027," Smith said, according to Reuters.
In a notable governance shift, Microsoft will establish a European board of directors comprised exclusively of European nationals to oversee its data center operations on the continent, operating under European law.
"We understand that European laws apply to our business practices in Europe, just as local laws apply to local practices in the United States and similar laws apply elsewhere in the world," Smith emphasized, distinguishing Microsoft's approach from other technology giants that have criticized EU regulations.
The company's stance contrasts sharply with other Silicon Valley firms' responses to European regulation.
As reported by The Telegraph newspaper, Meta's global affairs chief, Joel Kaplan, recently accused the EU of attempting to "handicap successful American businesses".
Microsoft's experience in challenging governments adds credibility to its promises, said Smith. The company previously sued both former president Barack Obama's administration and the Trump administration, to protect customer data and employee rights.
"We are the product of our experience, that explains why we think about things differently," Smith said.
The announcement reflects Microsoft's strategy to position itself as a "voice of reason" in an increasingly complex geopolitical landscape, where technology companies face mounting pressure from regulators in both the US and the EU.
"In the unlikely event we are ever ordered by any government anywhere in the world to suspend or cease cloud operations in Europe, we are committing that Microsoft will promptly and vigorously contest such a measure using all legal avenues available, including by pursuing litigation in court," Smith said.