Microsoft has decided to suspend a significant portion of its partnership with the Israeli military following allegations that its technology was misused for the mass surveillance of Palestinian civilians. The company confirmed that it has revoked access to specific cloud and AI services utilized by Unit 8200, Israel’s elite intelligence unit, after independent investigations uncovered extensive monitoring activities. This decision was prompted by a joint report from The Guardian, +972 Magazine, and Local Call, which disclosed that Unit 8200 was employing Microsoft’s Azure cloud platform to intercept and archive millions of Palestinian phone calls on a daily basis.
Internally, this system was described with the alarming terminology, ‘A million calls an hour.’ Brad Smith, Microsoft’s vice-chair and president, informed employees that the company had ‘ceased and disabled a set of services to a unit within the Israel ministry of defense’ after learning that its technology had been used in ways contrary to company policy. Investigators uncovered that Unit 8200 was utilizing a customized Azure environment to analyze intercepted calls, subsequently transferring the data to servers in the Netherlands. The repository reportedly expanded to over 8,000 terabytes of sensitive communications, which were then processed using AI tools.
Following the revelations, Israeli intelligence reportedly moved the data from the EU, with speculation suggesting it may have been transferred to Amazon Web Services. Both the IDF and Amazon have declined to comment on the matter. Microsoft’s relationship with Unit 8200 intensified after a notable meeting in 2021 between Microsoft CEO Satya Nadella and the then-unit commander Yossi Sariel. Initially, the surveillance initiatives concentrated on the West Bank, which is home to around three million Palestinians. Subsequently, the system allegedly facilitated targeting operations during Israel’s offensive in Gaza, with Azure’s capabilities allowing for the interception of calls across an entire population. The disclosures prompted an internal review of Microsoft’s interactions with the Israeli military.
An external investigation by the law firm Covington & Burling examined internal documents, although customer data remained protected due to privacy commitments. Smith reiterated Microsoft’s longstanding principles: ‘We do not provide technology to facilitate mass surveillance of civilians. We have applied this principle in every country around the world, and we have insisted on it repeatedly for more than two decades.’ This decision comes amid increasing scrutiny, with protests at Microsoft’s headquarters and European data centers, as well as campaigns by employee groups like No Azure for Apartheid, urging the company to terminate military contracts. A senior Microsoft executive reportedly conveyed to Israel’s defense ministry that evidence supported aspects of The Guardian’s reporting.
While access to the affected cloud storage and AI services has been halted, Microsoft has not completely severed ties with the Israeli Defense Forces, as other contracts and services remain operational. This case underscores the growing ethical challenges facing global tech companies as military forces worldwide increasingly depend on commercial cloud infrastructure. For Palestinians, these revelations highlight the role of foreign technology platforms in surveillance and targeting operations, raising significant concerns regarding civilian privacy and safety in conflict areas. Microsoft’s suspension represents the first known instance of a major U.S. technology firm cutting off services to the Israeli military since the escalation in Gaza, where the humanitarian impact continues to increase.