REDMOND (dpa-AFX) - Microsoft has moved to calm European fears that U.S. cloud providers could be forced to suspend operations in the region amid escalating transatlantic trade tensions.
Speaking in Brussels, Microsoft President Brad Smith acknowledged growing concerns that a future U.S. administration could order companies like Microsoft to halt cloud services for European customers, potentially as retaliation in a trade dispute. While he called such a scenario 'exceedingly unlikely,' Smith confirmed the concern is real and widespread across Europe.
In response, Microsoft will include a legally binding clause in its contracts with European governments and the European Commission, ensuring it would contest any foreign government directive to suspend cloud services before complying. Smith emphasized that Microsoft is prepared to go to court if needed, stating that customers 'want more than words,' and that the company is committed to enforceable protections.
At the same time, Microsoft unveiled plans to significantly boost its presence in Europe. The company will expand its data center capacity on the continent by 40 percent over the next two years, spanning 16 countries. This initiative supports the European Union's ambition to triple its AI computing power as part of its digital sovereignty goals.
Smith reaffirmed Microsoft's commitment to complying with European laws, including competition regulations and the Digital Markets Act, noting that laws in each region should govern local operations. He framed Microsoft as a constructive transatlantic partner, promoting stable relations even as trade and regulatory friction grows.
The move comes as concerns mount in Europe over reliance on U.S. tech firms, particularly in light of past threats from former President Trump to impose tariffs and penalties in response to European digital regulations.
Microsoft's proactive legal and infrastructure commitments appear aimed at preserving trust and strengthening its long-term position in the European cloud market.
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