Microsoft offers in-country data processing to 15 countries to strengthen sovereign controls for Microsoft 365 Copilot

As every organization evolves to become a Frontier Firm—human-led, agent-operated—trust is the foundation that powers AI transformation for governments and enterprises worldwide. Where and how data is processed and stored by AI-powered services helps further reinforce that foundation of trust. Microsoft is pleased to announce that we are making in-country data processing for customers’ Microsoft 365 Copilot interactions¹ available in 15 countries around the world. By the end of 2025, Microsoft will offer customers in four countries—Australia, the United Kingdom, India, and Japan—the option to have Microsoft 365 Copilot interactions processed in-country. In 2026, we’ll expand this option to customers in eleven more countries including Canada, Germany, Italy, Malaysia, Poland, South Africa, Spain, Sweden, Switzerland, the United Arab Emirates, and the United States. 

In-country data processing: Countries and timeline

This offer is designed to enable customers, particularly those in government and highly regulated industries, to access Microsoft 365 Copilot with an additional option for governance, security, and regulatory compliance. With in-country processing, Copilot interactions are processed, under normal operations, in data centers located within a nation’s borders, giving customers greater control over their data. In-country data processing can also improve performance by reducing latency, delivering an even more responsive Copilot experience.

Investing in customer flexibility, building customer trust

For years Microsoft has made significant investments in its global infrastructure to meet our customers’ local and regional security, compliance, and governance needs. Today, we offer in-country data residency to Microsoft 365 and Microsoft 365 Copilot customers in 27 countries and in-region data residency and processing for countries within the European Union (EU) Data Boundary. Now, with the addition of in-country data processing for Microsoft 365 Copilot interactions in 15 countries, Microsoft can offer customers a choice for the location of both AI data processing and residency, that can further at-scale adoption and deployment of Microsoft 365 Copilot. 

Looking ahead

Our principle is clear: your data, your control—wherever you operate. From local residency to in-country processing for Microsoft 365 Copilot, Microsoft is setting the standard for a world where innovation and sovereignty go hand in hand—built on strategic investments and infrastructure designed for the future of AI. Stay tuned for more details and the rollout timeline for in-country data processing for countries coming in 2026.

Learn more about the Sovereignty announcements at the Frankfurt AI Tour in the Azure blog. 

¹Prompts and responses from Microsoft 365 Copilot large language models hosted on Azure OpenAI.