Microsoft expands its sovereign cloud so customers can run Azure, AI models, and Microsoft 365 on their own servers, even offline

by | Oct 21, 2026 | Latest E-commerce News & Updates

Microsoft expanded its sovereign cloud lineup so customers can run more of its services on hardware they own, including SQL Server, its Foundry AI models, GitHub, and a local version of Microsoft 365 for approved customers. Customers will also be able to move those systems between connected and fully offline modes, so they can keep running through an outage or a cyberattack. For workloads that stay in Microsoft’s public cloud, a new Sovereign Control Panel shows customers where their sovereignty controls have gaps, and EU partners will get oversight of Microsoft engineers’ remote access. Azure general manager Alistair Speirs told The Logic that Canada, Europe, and the Middle East are driving demand, and that Microsoft can’t hand over data running offline on a customer’s own server.

Paul Drecksler is the founder and editor of Shopifreaks, covering the most important stories in e-commerce.

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