Overview

• Microsoft announced a 40% expansion of its European data center capacity over the next two years, covering 16 countries.
• The company reaffirmed its adherence to the EU’s Digital Markets Act and competition laws, emphasizing respect for European regulations.
• President Brad Smith pledged to contest any government directive to suspend European cloud operations and ensure service continuity.
• The expansion aligns with the EU’s goal to triple data center capacity to bolster digital sovereignty and AI competitiveness.
• Tensions between the U.S. and EU have grown due to U.S. tariffs and EU regulatory actions targeting Big Tech companies.