Microsoft to offer in-country data processing in India, Japan, Australia, UK by 2025 end

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Microsoft will be rolling out in-country data processing for Microsoft 365 Copilot interactions across 15 countries, starting with India, Japan, Australia and the UK by the of 2025. This caters to governments and highly regulated industries’ demand for sovereign data and AI controls.

In 2026, the technology giant will be expanding this feature 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.

According to a blog post released by the company on November 4, with in-country processing, Copilot interactions are processed in data centers located within a nation’s borders.

Additionally, in-country data processing can also “improve performance by reducing latency, delivering an even more responsive Copilot experience.”

Governments, in turn, will have additional option for governance, security, and regulatory compliance.

“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,” said Paul Lorimer, Corporate Vice President, Office 365 Enterprise and Cloud Engineering.

Microsoft will be sharing details on the timeline for in-country data processing for countries coming in 2026 soon.