Microsoft Boosts Data Sovereignty with In-Country AI Processing Plans

Technology behemoth Microsoft has unveiled ambitious plans to roll out in-country data processing for its AI tool, Microsoft 365 Copilot, aiming at 15 countries by 2026, including India. This initiative is designed to enhance data sovereignty and adherence to regulatory benchmarks.

In a strategic move, Microsoft has outlined that customers in India, Australia, Japan, and the UK can choose to process Copilot interactions domestically by late 2025. The company aims to broaden this option to an additional 11 countries by 2026, fortifying local data governance and security standards.

The decision follows Microsoft's commitment to refining governance and performance through localized data handling. The initiative underscores Microsoft's response to regulatory challenges, informed by its previous compliance framework revamp triggered by a legal spat with Nayara Energy.