Microsoft plans 40% data center expansion across Europe amid US-EU tensions

Microsoft President Brad Smith reaffirmed the company's commitment to complying with European laws, including the Digital Markets Act, even as U.S.-EU tensions escalate over recent regulatory fines imposed on American tech giants like Apple and Meta. This stance contrasts with the White House's criticism of the EU's regulatory measures, which President Trump has cited as grounds for potential tariffs against the bloc. Microsoft also announced plans to expand its European data center capacity by 40 percent over the next two years to support the region's digital infrastructure and address EU concerns over data privacy and cloud services dominance. Smith emphasized Microsoft's willingness to contest any government order that would require suspending its cloud operations in Europe, underscoring the company's intent to protect European interests. These moves are part of Microsoft's broader effort to position itself as a cooperative partner in Europe amidst ongoing transatlantic disputes over technology regulation and trade. The European Commission has welcomed such commitments as it seeks to strengthen the EU's technological sovereignty and competitiveness in the global AI and cloud markets.