Microsoft Cuts Israeli Military Unit’s Access to Cloud Services Amid Mass Surveillance Allegations

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Key Points:

  • Microsoft disabled certain Azure cloud and AI services used by an Israeli military unit after reviewing allegations of mass surveillance of Palestinians.
  • The move followed an investigation by The Guardian and partner outlets alleging Unit 8200 used Microsoft’s technology to store and analyze intercepted phone calls.
  • Microsoft says it will continue cybersecurity support for Israel while ensuring its technology is not used for civilian surveillance.

Microsoft Acts After Surveillance Allegations

Microsoft has suspended specific cloud and AI services for a unit within Israel’s Defense Ministry after reports that the technology was being used to conduct mass surveillance of Palestinians. The decision follows an August investigation by The Guardian, +972 Magazine, and Local Call, which alleged that the Israeli military’s Unit 8200 stored and analyzed millions of intercepted phone calls using Microsoft’s Azure platform.

Microsoft President Brad Smith confirmed the move in a company blog post on Thursday, stating that the company found evidence supporting elements of the reporting. The review uncovered the unit’s consumption of Azure storage in the Netherlands and the use of AI services, although Microsoft did not access stored data directly.

“We do not provide technology to facilitate mass surveillance of civilians,” Smith wrote. He emphasized that the company applies this principle globally and had “ceased and disabled a set of services” tied to the Israeli unit.

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Ongoing Fallout and Broader Implications

The allegations center on Unit 8200, Israel’s elite intelligence group often compared to the U.S. National Security Agency. Reports claim the unit used Azure’s vast storage and computing power to analyze Palestinian communications, with data stored on servers in Europe. Sources suggested the system also influenced Israeli military operations in Gaza and the West Bank.

Israel’s Defense Ministry has declined to comment on Microsoft’s decision, though it previously insisted its cooperation with technology firms was conducted under “legally supervised agreements.” Microsoft’s move comes after internal protests by employees and mounting pressure from pro-Palestinian advocacy groups, who welcomed the action but called for further severing of ties.

The tech giant stressed that while certain services are being disabled, it will continue providing cybersecurity protections to Israel and other countries in the Middle East. Smith said the company’s review remains ongoing and more details will be shared as appropriate.

The Guardian also reported that the unit is considering shifting its data storage to Amazon’s cloud platform, though Amazon has not commented. The controversy highlights growing scrutiny over how advanced cloud technologies are deployed in conflict zones and raises questions about accountability in global tech partnerships.