The EU Data Boundary is Microsoft’s contractual commitment to store and process customer data and personal data for its enterprise online services within the EU and EFTA.
What is the EU Data Boundary?
The EU Data Boundary is a geographically defined boundary within which Microsoft has committed to store and process customer data and personal data for its enterprise online services, including Azure, Dynamics 365, Power Platform, and Microsoft 365. Professional Services Data is stored at rest within the boundary for these services.
An important distinction: this is a program and a contractual commitment, not an Azure service you deploy. The online services in scope are identified in the Microsoft Product Terms as part of the services agreements.
Microsoft declared the program complete in April 2026. At the same time, the documentation notes that Microsoft continues to deploy more services and service capabilities within the EU Data Boundary and updates its documentation accordingly.
Core Features
- Scope: customer data and personal data for EU Data Boundary Services are stored and processed in datacenters located in EU or EFTA countries
- Country coverage: all 27 EU member states plus the EFTA countries Liechtenstein, Iceland, Norway, and Switzerland
- Datacenters: Microsoft names locations in Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Norway, Poland, Spain, Sweden, and Switzerland
- Pseudonymization: personal data in system-generated logs must be pseudonymized, for example through encryption, masking, tokenization, or data blurring
- Transparency about exceptions: remaining transfers outside the boundary are documented
- Service-specific configuration: Azure, Microsoft 365, and Dynamics 365 / Power Platform each have their own rules for coming into scope
Typical Use Cases
Evidence in a GDPR context
Organizations that must demonstrate to regulators or internal data protection bodies where customer data is stored and processed.
Public procurement
Tenders with requirements for EU-based data storage, where the contractual commitment forms part of the bid evaluation.
Tenant and resource configuration
Projects that align existing Azure resources, Microsoft 365 tenants, and Power Platform environments so that they fall within scope.
Risk assessment of remaining transfers
Analysis of the exceptions documented by Microsoft and their relevance to your own data categories.
Benefits
- A contractually anchored commitment rather than a mere configuration option
- A consistent framework across Azure, Microsoft 365, Dynamics 365, and Power Platform
- Mandatory pseudonymization of personal data in system-generated logs
- Documented exceptions that allow for a defensible risk assessment
- A clearly delimited country scope covering the EU and EFTA
Integration with innFactory
As an indirect Microsoft CSP partner, innFactory helps you set up your Azure environment so that it falls within the scope of the EU Data Boundary: region selection, handling of non-regional services, Azure Resource Manager configuration, and the documentation your data protection organization needs.
We show how such requirements are anchored technically in our article on Azure Landing Zones. For organizations bound by professional secrecy, our article on section 203 of the German Criminal Code in the public cloud covers the additional requirements.
Contact us for a no-obligation consultation on data residency and compliance on Microsoft Azure.
Typical Use Cases
Technical Specifications
Frequently Asked Questions
Is the EU Data Boundary a service I can purchase?
No. The EU Data Boundary is a geographically defined boundary and a contractual commitment by Microsoft, not a deployable resource. The online services in scope are identified in the Microsoft Product Terms as part of the services agreements.
Is the EU Data Boundary complete?
Microsoft publicly stated its completion in April 2026: "We also completed the EU Data Boundary, enabling European customer data to be stored and processed within the EU." (Microsoft On the Issues, April 29, 2026). The documentation also notes that Microsoft continues to deploy more services and service capabilities within the EU Data Boundary.
Which countries make up the EU Data Boundary?
The EU Data Boundary consists of the countries of the European Union and the European Free Trade Association (EFTA). The EFTA countries are Liechtenstein, Iceland, Norway, and Switzerland. It uses Microsoft datacenters announced or currently operating in Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Norway, Poland, Spain, Sweden, and Switzerland.
Are there exceptions where data leaves the EU?
Yes. Microsoft states explicitly that the commitments are subject to limited circumstances in which customer data, personal data, and Professional Services Data will continue to be transferred outside the EU Data Boundary. Those cases are described in detail in the EU Data Boundary documentation.
How do I make sure my Azure resources are in scope?
For Azure, regional services that you deploy in an EU Data Boundary region are in scope. For non-regional Azure services, Microsoft provides a separate configuration guide. To store Professional Services Data for Azure within the EU Data Boundary, you must additionally configure Azure Resource Manager accordingly.
What happens to personal data in log files?
Microsoft requires all personal data in system-generated logs to be pseudonymized, using techniques such as encryption, masking, tokenization, and data blurring. Retention policies set to the minimum required time, regular checks, and access controls that limit rehydration or reidentification apply in addition.
Note: All product information on this page has been compiled with care, but is provided without guarantee and may be outdated or incomplete. Cloud services evolve rapidly — features, pricing, SLAs, and availability change frequently. Authoritative and up-to-date information can only be found on the official product page of Azure (official documentation). This page does not represent an offer by Azure.
