Microsoft blocks Israel’s use of its data centers for mass surveillance of Palestinians

Microsoft has ended access to its data centers for a unit of the Israeli military that helped power a massive surveillance operation against Palestinian civilians, according to a report by The Guardian. The company says that the country’s spy agency has violated its terms of service.

This surveillance system collected every day in Gaza and the West Bank. The massive trove of data has been stored via Microsoft’s Azure cloud platform, but the company just informed Israel’s spy agency that this practice will no longer be acceptable.

Microsoft’s vice-chair and president, Brad Smith, alerted staff of the move in an email, writing that the company had “ceased and disabled a set of services to a unit within the Israel ministry of defense.” He went to suggest that this included cutting off access to cloud storage and some AI services.

“We do not provide technology to facilitate mass surveillance of civilians,” he continued. “We have applied this principle in every country around the world, and we have insisted on it repeatedly for more than two decades.”

Microsoft came to this decision after conducting an external inquiry to review the spy agency’s use of its Azure cloud platform. It also comes amid pressure from both employees and investors for the company to examine its relationship with Israel as it relates to the military offensive in Gaza.

This reportedly started back in 2021, when Microsoft CEO Satya Nadella allegedly okayed the storage effort personally after meeting with a commander from Israel’s elite military surveillance corps, Unit 8200. Nadella reportedly gave the country a customized and segregated area within the Azure platform to store these phone calls, all without knowledge or consent from Palestinians.

While conflict has existed between Israel and Palestinian groups for decades, these platforms were built out a full two years before the the most recent escalation in violence, beginning October 7, 2023. The mantra when building out the project was to record “a million calls an hour.”

Leaked Microsoft files suggested that the lion’s share of this data was being stored in Azure facilities in the Netherlands, but Israel allegedly moved it after Microsoft started its initial investigation. The Guardian has reported that Unit 8200 planned on transferring the data to the Amazon Web Services cloud platform. We have contacted Amazon to ask if it has accepted this gigantic trove of personal data.