Microsoft is to invest “tens of billions of dollars” in expanding its European datacentres amid rising geopolitical tensions.
In a blog post published today, Microsoft President Brad Smith pledged to boost its European datacentre capacity by 40% over the next two years.
This was the flagship announcement in five digital commitments to Europe set out by Smith.
The move comes amid reports that some European customers are eyeing a move away from US hyperscalers following the White House’s introduction of tariffs and erratic foreign policy moves.
Despite not explicitly naming the cause, Smith acknowledged that “given recent geopolitical volatility” European governments “likely will consider additional [cloud] options”.
“Some of these may involve public financing to support European home-grown offerings. We recognise the importance of a diversified technology ecosystem, and we are committed to collaborating with European participants across the tech ecosystem,” he wrote.
When combined with its recent construction, the plans will see Microsoft more than double its European datacentre capacity between 2023 and 2027, Smith claimed.
“It will result in cloud operations in more than 200 datacenters across the continent,” he boasted.
Microsoft’s “diversified approach” includes not only its public cloud datacentres, but also sovereign cloud datacentres – like the joint venture it recently forged with Capgemini and Orange in France (under the ‘Bleu’ banner).
The Redmond-based vendor is also collaborating with European cloud providers to offer Microsoft applications and services on their local cloud infrastructure, Smith claimed.
In the “unlikely” event that it is ordered by a government to suspend or cease cloud operations in Europe, Microsoft will contest this “using all legal avenues available”, Smith said.
The software goliath will “rely upon European partners with contingency arrangements for operational continuity in the unlikely event Microsoft were ever required by a court to suspend services”, Smith added.
Microsoft’s announcement – which was trumpeted on LinkedIn by Microsoft’s President of Enterprise and Industry EMEA, Clare Barclay (pictured top) – was branded “misleading” by Nicky Stewart, Senior Advisor to the recently formed Open Cloud Coalition, however.
“For Microsoft to say that its new European Commitments will strengthen resilience and competitiveness is misleading,” she stated.
“True competitiveness means customers having choice. When two suppliers dominate the market – and with Microsoft locking in customers through unfair software licensing – the EU pays the price – over €1bn a year in extra costs. A competitive market is the answer to European resilience but we won’t get there without urgent action to address the unfair licensing practices that are holding us back.”
