Microsoft Halts Cloud Services to Israeli Military Over Surveillance Concerns

Microsoft has discontinued specific cloud services to the Israeli Ministry of Defense after an internal investigation revealed the technology was being used to store surveillance data on Palestinian phone calls. The decision affects subscriptions to Azure cloud storage and certain AI services.

"We do not provide technology to facilitate mass surveillance of civilians," stated Microsoft Vice Chair and President Brad Smith in a blog post. "We have applied this principle in every country around the world, and we have insisted on it repeatedly for more than two decades."

The investigation was initiated in August following a report by The Guardian, which alleged that Unit 8200, an elite Israeli military intelligence unit, was utilizing Azure cloud storage to house data obtained through the surveillance of Palestinians in Gaza and the West Bank. Smith acknowledged The Guardian's reporting, noting that without it, the company would not have been aware of the issue due to customer privacy rights that prevent access to customer content.

Microsoft informed Israeli authorities of its decision last week. The company stated that the review is ongoing but declined to comment on specific aspects still under examination.

In recent months, Microsoft has faced internal and external criticism regarding its involvement with Israel. Protests occurred during the company's 50th anniversary celebration in April, and in August, employees staged a sit-in at Smith's office, leading to a lockdown. The company has also terminated multiple employees for activism related to its contracts with Israel.