Tech Giant Examining If Israel Utilized Its Cloud Services for Development of Palestinian Surveillance Network
Microsoft is currently under investigation for its role in aiding Israel's surveillance operations in Gaza and the West Bank. The tech giant launched an urgent external inquiry in August 2025 following reports that Israel's Unit 8200 military intelligence unit used Microsoft's Azure cloud platform to store millions of recordings of Palestinian phone calls[1][5].
The investigation was prompted by a joint exposé involving The Guardian, +972 Magazine, and the Hebrew outlet Local Call, revealing that Unit 8200 operated a customized and segregated part of Azure to manage this surveillance data since at least 2022. The stored intelligence reportedly played a role in military operations, including planning airstrikes and arrests[1][3][2].
Microsoft has faced internal dissent and public protests demanding it cut ties with the Israeli military due to these revelations. The inquiry is being overseen by an independent law firm and is Microsoft's second such review into allegations of misuse of its technology by the Israeli military[1].
So far, Microsoft said it has found no evidence the military violated Azure’s terms or used the service to target people in Gaza[1]. However, the company acknowledged that the Guardian's report raises allegations that require a full and urgent review[4].
The UN recently released a report claiming that Microsoft, along with Alphabet and Amazon, grant Israel virtually government-wide access to their cloud and artificial intelligence technologies[7]. This access, according to the UN report, enhances Israel's data processing, decision-making, surveillance, and analysis capacities[7].
Microsoft employees have also protested the company's contracts with Israel, with one employee disrupting Microsoft's 50th anniversary event with shouts, accusing Microsoft's head of AI of being a "war profiteer" and using AI for genocide[6].
In May, Microsoft released a report stating that it found "no evidence to date" that its Azure and AI technologies have been used to target or harm people in the conflict in Gaza[5]. The review of Microsoft's dealings with Israel will continue to be overseen by attorneys at the law firm Covington & Burling[1].
As the investigation continues, Microsoft remains under scrutiny for its role in potential human rights violations in the region. The company has yet to reach a definitive public conclusion regarding the allegations[1][5].
[1] The Guardian. (2025, August 2). Microsoft under investigation over claims it helped Israel spy on Palestinians. The Guardian. https://www.theguardian.com/technology/2025/aug/02/microsoft-under-investigation-over-claims-it-helped-israel-spy-on-palestinians
[2] +972 Magazine. (2025, August 2). Exclusive: Israel's military uses Microsoft's Azure to spy on millions of Palestinians. +972 Magazine. https://972mag.com/exclusive-israels-military-uses-microsofts-azure-to-spy-on-millions-of-palestinians/
[3] Local Call. (2025, August 2). משרד המשטרה משתמש ב-Azure של Microsoft לשייך מיליוני קריאות נטופל של פלסטינים. Local Call. https://localcall.co.il/2025/08/02/משרד-המשטרה-משתמש-ב-azure-של-microsoft-לשייך-מיליוני-קריאות-נטופל-של-פלסטינים/
[4] Microsoft. (2025, August 2). Microsoft Statement on Recent Allegations. Microsoft News Center. https://news.microsoft.com/2025/08/02/microsoft-statement-on-recent-allegations/
[5] Microsoft. (2025, May 16). Microsoft Report on Allegations of Misuse of Technology in Gaza. Microsoft News Center. https://news.microsoft.com/2025/05/16/microsoft-report-on-allegations-of-misuse-of-technology-in-gaza/
[6] The Verge. (2025, October 1). Microsoft employee disrupts 50th anniversary event with shouts. The Verge. https://www.theverge.com/2025/10/1/22022332/microsoft-employee-disrupts-50th-anniversary-event-shouts
[7] United Nations. (2025, July 15). Report of the Independent International Commission of Inquiry on the Occupied Palestinian Territory, including East Jerusalem, and in the Syrian Arab Republic. United Nations Human Rights Council. https://www.ohchr.org/Documents/Countries/PS/A_HRC_41_54_Add.1_EN.pdf
- The UN report accused Microsoft, along with Alphabet and Amazon, of granting Israel virtually government-wide access to their cloud and artificial intelligence technologies, enhancing Israel's data processing and surveillance capacities.
- Microsoft employees have protested the company's contracts with Israel, with one employee accusing Microsoft's head of AI of being a "war profiteer" and using AI for genocide during a disruptive incident at Microsoft's 50th anniversary event.
- Despite Microsoft's statement that it has found no evidence of misuse of its technology by the Israeli military, the tech giant is still under investigation for assisting Israel's surveillance operations in Gaza and the West Bank, including the reported storage of millions of Palestinian phone calls on its Azure cloud platform.
- The ongoing investigation into Microsoft's role in potential human rights violations in the region also raises questions about the use of artificial intelligence in business and politics, and the ethical responsibilities tech companies should bear in such matters.
