Microsoft’s sovereign cloud control for Indian clients
Microsoft will give Indian clients “full sovereign control” over their cloud data, including where it resides, which data centres are used and which laws apply. The policy shift follows the temporary suspension of Nayara Energy’s Azure services on 22 July 2025, when Microsoft said European Union sanctions on Russia caused the disruption.
Microsoft said the updated framework gives clients complete legal control over cloud-based data storage, processing and operations. The company did not disclose the size of its fourth Indian data centre in Hyderabad, or how much of its committed $20.5 billion in India data centre spending was used for it.
What Microsoft’s sovereign cloud offers
Under the new framework, clients can use in-country data residency, control their keys and locations, and have their data governed by local laws.
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The offering also includes confidential computing, which protects data while it is being processed. Microsoft said clients receive “full control of the stack” and “full access and control” over their proprietary data.
Why sovereign cloud matters to global buyers
That question became concrete for Indian customers when Nayara’s Azure operations were halted and later reinstated by 30 July 2025. Microsoft said the updated framework ensures overseas regulatory directives do not interrupt service delivery.
Microsoft said its sovereign client base in India now includes 22 states. It also announced that its Hyderabad data centre is operational, with early clients including HDFC Bank, Bajaj Finserv, PB Pay and Adani Group.
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