Microsoft has suspended access to its cloud and AI technology for Israel’s Unit 8200, the elite military intelligence unit, after revelations that it was using Azure to store and process millions of intercepted Palestinian phone calls. The decision follows investigations by The Guardian, +972 Magazine, and Local Call, which exposed a secret surveillance program capable of handling “a million calls an hour.”

Sources revealed that Unit 8200 had stored up to 8,000 terabytes of Palestinian communication data in Microsoft’s Netherlands data center, violating the company’s terms of service. After the investigation became public, the data was quickly moved, reportedly to Amazon Web Services.

The program reportedly began after a 2021 meeting between Microsoft CEO Satya Nadella and Unit 8200’s then-commander, Yossi Sariel. In response to growing pressure from employees, investors, and human rights groups, Microsoft conducted an independent review and decided to disable certain services for the unit.

READ MORE:

Trump Approves $14 Billion TikTok U.S. Deal Amid Ongoing Security Concerns

Microsoft President Brad Smith clarified in a staff email that the company had “ceased and disabled a set of services to a unit within the Israeli Ministry of Defence,” while stressing that Microsoft does not support mass surveillance of civilians anywhere in the world.

This marks the first known instance of a major U.S. tech company cutting direct access to the Israeli military over surveillance abuses. However, Microsoft has not completely severed ties with the Israeli Defence Forces, which still retain access to other services.

The revelations underscore how Israel has relied on U.S. technology firms during its Gaza offensive, with reports suggesting the surveillance system even helped identify bombing targets that killed thousands of Palestinians. The move also sparks fresh debate about the risks of storing sensitive military intelligence on foreign cloud platforms.