Microsoft Cuts Israeli Military’s Access to Cloud Over Palestinian Surveillance

Microsoft has taken a major step by cutting off access to its technology for Israel’s Unit 8200, the military’s elite spy agency. Microsoft made this decision after reports revealed that the Israeli military was using the Azure cloud platform to store and process millions of intercepted Palestinian phone calls every day.

According to sources, Microsoft informed Israeli officials last week that Unit 8200 had violated its terms of service. The agency had been storing sensitive surveillance data in Microsoft’s servers, including material collected from Palestinians in Gaza and the West Bank. This was part of a secret project that gave Israeli intelligence officers the ability to record, replay, and analyse vast amounts of civilian communications.

Microsoft Cuts Israeli Military’s Access to Cloud Over Palestinian Surveillance

The Guardian, along with +972 Magazine and Local Call, had earlier exposed the surveillance program. Their investigation revealed that Israel used Microsoft’s technology to develop a system so powerful that Unit 8200 officers described it with the phrase: “A million calls an hour.”

The project reportedly began after a meeting in 2021 between Microsoft CEO Satya Nadella and then-commander of Unit 8200, Yossi Sariel. Following these revelations, Microsoft ordered an independent review of its ties with the unit. The findings of this inquiry led the company to suspend access to some of its cloud and AI services for Israel’s spy agency.

Unit 8200 had stored as much as 8,000 terabytes of Palestinian communications data in a Microsoft datacenter in the Netherlands. After the investigation became public, the agency quickly transferred this data out of the country, with reports suggesting it may have been moved to Amazon Web Services. Neither the Israeli military nor Amazon commented on the matter.

The decision comes at a time when Microsoft faces growing internal and external pressure. Employees, investors, and human rights groups had raised concerns over the company’s role in Israel’s military operations, particularly in Gaza. A worker-led campaign called “No Azure for Apartheid” also protested outside Microsoft offices in the US and Europe, demanding an end to all cooperation with the Israeli military.

See Also: Microsoft Under Fire Over Alleged Cloud Role in Gaza Conflicts

Microsoft’s president, Brad Smith, addressed the issue in an email to staff. He said the company had “ceased and disabled a set of services to a unit within the Israeli Ministry of Defence.” He also made it clear that Microsoft does not provide technology for mass surveillance of civilians in any country.

This move marks the first known case of a US technology company cutting ties with the Israeli military over the use of its tools in the Gaza war. However, Microsoft has not ended its broader relationship with the Israeli Defence Forces, which will continue to access other services.

The revelations highlight the extent to which Israel has depended on US tech firms to support its ongoing offensive in Gaza. Reports suggest the surveillance system even helped identify bombing targets, contributing to strikes that killed tens of thousands of Palestinians.

Microsoft’s decision is likely to spark debate in Israel about storing sensitive military data on foreign cloud platforms. For now, it also highlights how global tech companies are being compelled to take responsibility for how their tools are utilised in conflict zones.