Microsoft Halts Azure Services for Israeli Unit 8200 Over Mass Surveillance Allegations

Microsoft has terminated specific Azure cloud computing and AI services for Israel's military intelligence Unit 8200, citing violations of its terms of service related to the alleged mass surveillance of Palestinian civilians. The decision follows an investigation by The Guardian, +972 Magazine, and Local Call, which revealed the unit was using Microsoft's platform to store and process millions of intercepted Palestinian phone calls. Microsoft President Brad Smith confirmed the action in an internal memo to employees, stating the company "ceased and disabled a set of services to a unit within the Israel Ministry of Defense."

The investigation, published in August, detailed how Unit 8200 utilized Azure's extensive storage capacity and computing power to collect, play back, and analyze phone calls from Palestinians in Gaza and the West Bank. Sources familiar with the project described its scale with the mantra, "A million calls an hour," involving up to 8,000 terabytes of data. This expansive system, operational since 2022, reportedly facilitated the preparation of airstrikes and shaped military operations.

According to The Guardian, the termination came after Microsoft's external inquiry found evidence supporting the August report's claims. Brad Smith emphasized Microsoft's long-standing principle: "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." The company had previously conducted a review in May, finding no evidence of misuse, but reassessed its conclusions after the August revelations.

Following the Guardian's initial report, Unit 8200 reportedly moved the surveillance data from Microsoft's servers in the Netherlands, with plans to transfer it to Amazon Web Services. While the termination affects specific cloud storage and AI services used by Unit 8200, Microsoft clarified that its broader commercial relationship with the Israel Defense Forces (IDF) remains intact. The move marks the first known instance of a major U.S. tech company withdrawing services from the Israeli military since the recent conflict in Gaza began.