September 26, 2025 | Washington/Tel Aviv – Microsoft has suspended access to certain cloud and artificial intelligence services used by Israel’s Ministry of Defense (IMoD), following an internal review that found evidence supporting reports of mass surveillance of Palestinian civilians.
What Happened
The company confirmed on Thursday, September 25, that it had deactivated a set of Azure cloud storage and AI subscriptions linked to an IMoD division. The review, conducted with assistance from law firm Covington & Burling LLP, was launched after The Guardian, +972 Magazine, and Local Call reported that Israel’s Unit 8200 had used Microsoft infrastructure to store and analyze intercepted communications from Palestinians in Gaza and the West Bank.
Microsoft President Brad Smith wrote in a company blog post:
“We do not supply technology that enables mass surveillance of civilians.”
Official Responses
- Microsoft: The review found “evidence that aligns with aspects of the Guardian’s reporting, including IMoD’s use of Azure storage in the Netherlands and AI services.” The company said the suspended services cover specific subscriptions, cloud storage, and AI tools.
- Israel’s Ministry of Defense: Declined to specify which services were affected, noting the review is ongoing.
Employee and Rights Group Reactions
- No Azure for Apartheid (Employee Group): Welcomed the move but said Microsoft had “only disabled a small subset of services to one unit,” urging broader accountability.
- Human Rights Watch: Researcher Meenakshi Ganguly stated, “Any corporate action limiting tools of mass surveillance is welcome, but comprehensive safeguards are still needed.”
Impact and Fallout
- Operational: Unit 8200 is reportedly migrating affected workloads to Amazon Web Services (AWS), a transition that could delay intelligence processing.
- Corporate: Microsoft faces renewed employee activism and investor scrutiny over its military contracts, especially amid the ongoing Gaza conflict.
- Policy Precedent: This marks the first known case of a U.S. tech giant revoking services from a foreign military on ethical grounds, potentially setting a benchmark for industry-wide policies.
Global Implications
The decision highlights growing tensions between U.S. tech firms’ human rights commitments and their relationships with allies’ defense agencies. Analysts suggest it may push other companies to reassess contracts linked to surveillance and military operations. The timing is notable as international bodies debate technology’s role in human rights protections during the Israel–Gaza war.
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