Microsoft reacts to privacy concerns in europe and wants to save and process data from some european customers in the eu. This should ensure that the european data protection basic ordinance intervenes when replacing data. "We will not post your data outside the eu", customer microsoft prasident brad smith on a blog entry.
Background: the data transfer between the eu and the us can be legally risky. The reason for this is ineffective privacy-shield and safe-harbor agreements. These were the main legal bases for the data transfer, which the european court of justice has now tilted. There are not new legal bases yet. The us government under prasident joe biden has recently been opened to delay with the eu a new comprehensive privacy agreement.
Data from private users are not protected
The new service only applies to microsoft customers from companies and public administration. This should be used to use all data created with azure, microsoft 365, microsoft office, microsoft teams and dynamics 365.
Nevertheless, it remains unclear whether the data limit can eliminate the legal uncertainties in data transfer between europe and the usa. According to the microsoft group, the microsoft group is still responsible for the cloud data and is thus subject to the us jurisdiction.