Microsoft Launches Urgent Inquiry Into Alleged Surveillance Use of Azure by Israeli Military

Picture Credit: The Seattle Times

Microsoft has announced a fresh external investigation into allegations that its Azure cloud platform was used by Israel’s Unit 8200 military surveillance agency to conduct mass monitoring of Palestinians.

The move follows a joint investigation by The Guardian, +972 Magazine, and Local Call, which reported that Unit 8200 created a customised and segregated Azure environment to store millions of intercepted phone calls from Gaza and the West Bank. According to the report, intelligence derived from this data may have been used to identify bombing targets during Israel’s ongoing offensive in Gaza.

In its statement, Microsoft stressed that such use of Azure for mass civilian surveillance would violate its terms of service. The company has tasked US law firm Covington & Burling with leading the inquiry, expanding on an earlier review this year that initially found no evidence of misuse. However, new allegations have raised concerns that some Israel-based employees may have withheld key information during the previous investigation.

The controversy has also intensified pressure from advocacy groups such as No Azure for Apartheid, which accuses Microsoft of complicity in human rights violations and demands an immediate severing of ties with the Israeli military.

The issue is particularly sensitive given that leaked files suggest Microsoft executives, including CEO Satya Nadella, were aware as early as 2021 of Unit 8200’s plan to migrate large amounts of classified intelligence to Azure. Microsoft, however, insists it was unaware that intercepted Palestinian phone calls would form part of the data.

With over 60,000 civilian deaths reported in Gaza since October 2023, the allegations have amplified scrutiny of how global tech giants balance commercial partnerships with their ethical and human rights obligations. Microsoft has pledged to publish the findings of this latest inquiry once complete.