Microsoft Expands Sovereign Cloud with AI and Security Enhancements

Microsoft has announced significant expansions to its Sovereign Cloud capabilities, introducing new AI and security services designed to address evolving regulatory demands. The enhancements, unveiled on November 4, 2025, build upon existing digital sovereignty controls, enabling organizations to maintain data control while scaling operations.

Key highlights include the introduction of an EU Data Boundary for AI, ensuring all AI data processing for EU customers remains within the region. Microsoft 365 Copilot will expand its in-country data processing to 15 countries by 2026, while Azure Local will feature enhanced service capabilities and disconnected operations.

Core Features of the Expansion

EU Data Boundary for AI: Ensures AI data processing stays within the EU.
Microsoft 365 Copilot Expansion: In-country processing for 15 countries by 2026.
Azure Local Enhancements: Increased scale with external SAN storage and NVIDIA GPUs.
Microsoft 365 Local GA: General availability of Microsoft 365 Local.
Partner Specialization: Availability of the Digital Sovereignty specialization.

Microsoft is also introducing a new Azure offering featuring the NVIDIA RTX Pro 6000 Blackwell Server Edition GPU, allowing organizations to accelerate AI initiatives. Microsoft 365 Local has achieved general availability, bringing core productivity workloads to Azure Local.

Future Developments

Microsoft's roadmap includes several upcoming features:

Data Guardian: Provides transparency into operational sovereignty controls.
Enhanced Change Controls: Configurable policies for cloud change oversight.
Site-to-Site Disaster Recovery: Azure Site Recovery in Azure Local for business continuity.
Hybrid Transition: Ability to transition from hybrid to fully disconnected operations in Azure Local.

Additionally, Microsoft is collaborating with National Partner Clouds like Delos Cloud and Bleu, and with SAP to deploy RISE with SAP. More details will be presented at Microsoft Ignite in November.

Commitment to Digital Sovereignty

Microsoft reaffirms its commitment by establishing a European board, increasing datacenter capacity, embedding digital resiliency into government contracts, and expanding open-source investments. The refreshed Sovereign Landing Zone (SLZ) is built on the Azure Landing Zone (ALZ), providing a platform for customers to implement sovereign controls.