Microsoft announced that it will offer in-country data processing for Microsoft 365 Copilot users in India by the end of 2025, reinforcing its commitment to data security and regulatory compliance. India joins Australia, the United Kingdom, and Japan as one of the first four markets globally to gain this capability.
The feature will ensure that all Copilot interactions, including data collection, storage, and analysis are processed within India's borders. This means customers' data will remain inside the country, offering greater control, privacy, and performance. In-country processing is especially significant for governments and highly regulated industries, such as banking, healthcare, and public administration.
Paul Lorimer, Corporate Vice President of Office 365 Enterprise and Cloud Engineering at Microsoft, said, "As every organisation evolves to become a frontier firm, human-led and agent-operated trust is the foundation of AI transformation. Where and how data is processed helps strengthen that trust".
Microsoft also plans to extend the in-country data processing option to 14 additional countries by the end of 2026, including the U.S., Canada, Germany, Italy, Malaysia, Spain, Switzerland, the UAE, and South Africa.
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With in-country data centers, users can expect faster response times and enhanced AI performance by reducing latency. This step aligns with the global trend toward data sovereignty, as tech companies increasingly localize data storage to meet national privacy standards.
The initiative highlights Microsoft's ongoing efforts to build trustworthy AI ecosystems that balance innovation with compliance, supporting India's growing digital and enterprise landscape.