Microsoft announced Thursday that it has cut off access to some of its cloud and AI services previously provided to a division of Israel’s Ministry of Defense after discovering its technology had been used in a sweeping surveillance campaign targeting Palestinians.
The division, known as Unit 8200, is an elite branch of the Israel Defense Forces specializing in cyberwarfare and signals intelligence. According to an investigation published earlier this year by The Guardian, Unit 8200 intercepted and stored massive amounts of phone conversations from Palestinians in Gaza and the West Bank. Reports indicated that the unit gathered millions of calls every day and stored them on Microsoft’s Azure cloud servers located in the Netherlands—amounting to as much as 8,000 terabytes of data.
In a public statement, Microsoft president Brad Smith acknowledged that the company’s review had confirmed aspects of the reporting. “While our review is ongoing, we have found evidence that supports elements of The Guardian’s reporting. This includes information relating to IMOD’s consumption of Azure storage capacity in the Netherlands and the use of AI services,” Smith wrote. As a result, Microsoft has moved to “cease and disable” certain services used by Unit 8200, including access to specific cloud storage and artificial intelligence tools.
Although Smith did not directly describe the activities as mass surveillance, he emphasized that Microsoft’s policies prohibit the use of its services for spying on civilians. He explained, “We have reviewed this decision with IMOD and the steps we are taking to ensure compliance with our terms of service, focused on ensuring our services are not used for mass surveillance of civilians.”
This reversal highlights a sharp shift in Microsoft’s position. As recently as May, the company insisted there was “no evidence” its platforms were being used to harm Palestinians. Yet, investigations revealed that in late 2021, Microsoft CEO Satya Nadella personally met with Unit 8200’s leadership to discuss hosting intelligence material on Azure.
The company’s decision comes amid mounting pressure from its own employees and activists. A campaign led by the group No Azure for Apartheid has staged multiple protests—including sit-ins at Microsoft’s offices, disruptions at major events like the Build Conference, and demonstrations during the company’s 50th anniversary celebrations. The group accuses Microsoft of directly enabling what the United Nations Independent International Commission of Inquiry has described as genocide in Gaza.
“Today’s announcement is a historic and unprecedented victory,” said Hossam Nasr, a former Microsoft employee and organizer with No Azure for Apartheid. “Within less than a month of our sit-in in Brad Smith’s office, Microsoft has become the first U.S. tech company to halt the sale of certain technologies to the Israeli military since the genocide began. This breakthrough is the result of years of relentless organizing.”
However, Nasr stressed that the move is only a partial step. “Microsoft has only disabled a small subset of services to one unit of the Israeli military. The vast majority of its contracts remain untouched,” he said. Smith’s own statement reflected this, noting that Microsoft continues to provide cybersecurity protections to Israel and other countries in the region under the Abraham Accords.
For critics, the decision highlights both progress and contradiction. While Microsoft has taken a rare step in restricting services to a military client, activists argue that continued collaboration with the Israeli government undermines its moral credibility. As Nasr concluded, “While Palestinians are still being bombed, starved, and displaced, it is indefensible for Microsoft to provide any support at all to the Israeli military. This decision only strengthens our resolve to keep pushing until every demand is met—and until Palestine is free.”