Microsoft's Big Move: In-Country Copilot Data Processing for India by 2025

Further, Microsoft will expand this option to eleven more countries, the release said, adding that in-country data processing for Microsoft 365 Copilot interactions, will enhance customer control over AI data.

Further in-country data processing can also improve performance by reducing latency, delivering an even more responsive Copilot experience, the company said.

By the end of 2025, customers in Australia, the United Kingdom, India, and Japan will have the option for Copilot interactions to be processed within their national borders.

In 2026, the capability will expand to Canada, Germany, Italy, Malaysia, Poland, South Africa, Spain, Sweden, Switzerland, the United Arab Emirates, and the United States.

Microsoft mentioned that in-country processing allows Copilot interaction data to be processed in data centres within the customer's nation, giving customers greater control over their data.

This offer is designed to enable customers, particularly those in government and highly regulated industries, to access Microsoft 365 Copilot with an additional option for governance, security, and regulatory compliance, it said.

"A map of the Microsoft 365 data residency and processing commitments highlighting the countries where in-country data processes will be available by the end of 2025 and in 2026," the release said.

Currently, Microsoft offers in-country data residency to Microsoft 365 and Microsoft 365 Copilot customers in 27 countries and in-region data residency and processing for countries within the European Union (EU) Data Boundary.

India’s data centre capacity is expected to grow from the current 1.2 GW to about 8 GW by 2030, expanding at an annual rate of nearly 17 per cent, driven by the country’s rapid digital transformation, growing internet usage, and rising demand for AI and cloud-based services, according to Trade Brains report.

- IANS