Microsoft Ends Azure Services Tied to IDF Unit Accused of Monitoring Palestinians

Microsoft has cut off access to certain cloud computing services used by Israel’s Defense Ministry, following reports that its technology was being deployed for mass surveillance of Palestinians.

Investigation Sparks Microsoft’s Action

In a blog post, Microsoft President Brad Smith confirmed that the company had “ceased and disabled a set of services to a unit within the Israel Ministry of Defense.” The decision came in response to an investigation published in early August by The Guardian and Israeli outlet +972 Magazine.

According to those reports, Israel’s military intelligence Unit 8200 was using Microsoft’s Azure cloud platform to store millions of phone calls from Palestinians in Gaza and the occupied West Bank. The allegations suggested the technology was part of a broader mass surveillance effort targeting civilians.

Microsoft’s Internal Review

Microsoft announced on August 15 that it would launch a formal review into the claims. Smith emphasized that the company does not provide its services “to facilitate mass surveillance of civilians,” a policy he said applies universally “in every country around the world.”

The review involved combing through business records, financial documents, and internal files — though not the actual content of any data stored on Azure. Microsoft said the process uncovered evidence consistent with some of the findings reported by journalists, including Israel’s “consumption of Azure storage capacity in the Netherlands and the use of AI services.”

As a result, Microsoft notified the Israeli Defense Ministry that its relevant cloud subscriptions were being suspended. The termination specifically impacted access to certain storage systems and artificial intelligence tools.

Reaction and Ongoing Review

An Israeli security official, responding to the announcement, insisted the move would not harm Israel’s operational military capacity. “There is no damage to the operational capabilities of the IDF,” the official said.

Despite the suspension, Microsoft noted that its internal review is still ongoing, leaving open the possibility of further measures depending on what investigators uncover.

Broader Implications

The episode highlights the growing scrutiny facing global tech giants over how their tools are used in conflict zones and by governments accused of human rights abuses. Microsoft, like other major cloud providers, has positioned itself as a trusted partner for public and private clients worldwide. Its decision to suspend services to Israel’s military unit reflects an effort to enforce company-wide ethical standards, while also navigating the diplomatic sensitivities of one of the world’s most volatile conflicts.