New Delhi– Microsoft said on Wednesday that it will begin offering in-country processing of Microsoft 365 Copilot interactions in India by the end of 2025, giving customers more control over how their AI-related data is handled.
The company said the move is aimed at improving governance, security, and regulatory compliance for organizations, especially those in government and other highly regulated sectors. Local processing can also reduce latency, potentially making Copilot responses faster and more efficient.
By the end of 2025, customers in India, Australia, the United Kingdom, and Japan will have the option to process Copilot interactions within national borders. The company plans to extend the capability in 2026 to Canada, Germany, Italy, Malaysia, Poland, South Africa, Spain, Sweden, Switzerland, the United Arab Emirates, and the United States.
Microsoft said local processing will route Copilot interaction data to data centers located within a customer’s country, allowing organizations to maintain greater oversight of sensitive information.
The company currently offers in-country data residency for Microsoft 365 and Microsoft 365 Copilot in 27 countries, along with regional data processing within the EU Data Boundary.
The expansion comes as India’s data center capacity is projected to grow significantly. Industry estimates suggest capacity could rise from the current 1.2 gigawatts to roughly 8 gigawatts by 2030, driven by rapid digital adoption and increased demand for AI-driven cloud services. (Source: IANS)
