Microsoft Cuts Israeli Military’s Access to Some Cloud and AI Services

• Microsoft confirmed it disabled certain Azure services used by Israel’s defense ministry.
• A joint media investigation found Israel’s Unit 8200 used Microsoft cloud to store surveillance data on millions of Palestinians.
• Company president Brad Smith said the use violated Microsoft’s terms of service.

Microsoft has curtailed parts of its contract with the Israeli military, disabling some cloud storage and AI services after finding they were used for mass surveillance of Palestinians in Gaza and the West Bank.

What is 8200?

Unit 8200 is an Israeli Intelligence Corps unit of the Israel Defense Forces responsible for clandestine operation, collecting signal intelligence (SIGINT) and code decryption, counterintelligence, cyberwarfare, military intelligence, and surveillance. Military publications include references to Unit 8200 as the Central Collection Unit of the Intelligence Corps, and it is sometimes referred to as Israeli SIGINT National Unit (ISNU). It is subordinate to Aman, the military intelligence directorate.

Microsoft-Israel Cooperation

The tech giant Microsoft developed a customized version of its cloud platform for Israel’s Unit 8200, which is housing audio files of millions of calls by Palestinians in Gaza and the West Bank, a joint investigation reveals.

Terms Violated

Brad Smith, Microsoft’s president, wrote in a blog post that the company “ceased and disabled a set of services” after a joint investigation by The Guardian, +972 Magazine, and Local Call revealed Israel’s Unit 8200 stored intercepted phone call data on Azure servers in Europe.

“We do not provide technology to facilitate mass surveillance of civilians. We have applied this principle in every country around the world for more than two decades,” Smith said.

Unit 8200’s Use of Azure

Unit 8200, Israel’s elite cyber unit, reportedly moved sensitive intelligence into Azure after a 2021 meeting between its chief Yossi Sariel and Microsoft CEO Satya Nadella. Sources said the system aided air strike targeting and surveillance operations.

Data on millions of Palestinians was stored in Microsoft’s data centers in Ireland and the Netherlands, according to the investigation.

Limited Action

Smith did not specify which unit lost access but confirmed some Israeli defense ministry subscriptions were cancelled. Critics said the step was narrow. Hossam Nasr, a former Microsoft employee dismissed after protesting the firm’s Israel contracts, called it “an unprecedented win” but added: “The vast majority of Microsoft’s contract with the Israeli military remains intact.”