Worried Europeans can now cut Azure's phone cord completely
The Register
February 25, 2026
AI-Generated Deep Dive Summary
European concerns over data sovereignty have driven Microsoft to unveil Azure Local, a fully disconnected cloud service that operates independently of its global network. This move comes amid heightened trade tensions between the U.S. and Europe, with organizations seeking greater control over their digital infrastructure to avoid potential interference from foreign governments or regulatory bodies like the CLOUD Act.
The new feature builds on earlier efforts by Microsoft to address jittery European customers, such as its EU Data Boundary service completed in March 2023. Azure Local, formerly known as Azure Stack HCI, enables businesses to run critical workloads locally using specialized hardware, ensuring that data remains within customer-controlled boundaries. Unlike previous iterations, the latest version removes any reliance on Azure Arc for management, eliminating the need for cloud connectivity altogether.
This development aligns with broader trends in the tech industry, where major players like Amazon and Google are also offering air-gapped solutions—services that operate entirely offline—to cater to demands for sovereignty. While these measures provide reassurance, questions remain about how much control organizations truly have over their data, especially since the software itself is still supplied by U.S.-based companies.
For readers interested in tech, this shift underscores the growing importance of digital sovereignty and resilience in cloud computing. As geopolitical tensions rise, businesses are increasingly prioritizing solutions that allow them to operate independently, ensuring continuity and security in isolated environments. Whether these efforts fully satisfy concerns over data control will depend on implementation details and how sovereignty is defined.
In summary, Azure Local represents a significant step forward for organizations seeking to insulate themselves from potential disruptions or data breaches tied to global cloud services. While it offers enhanced control and reliability, the reliance on proprietary software supplied by U.S. tech giants continues to raise questions about the extent of true sovereignty.
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Originally published on The Register on 2/25/2026