Poland's $700M Microsoft deal sparks EU digital sovereignty concerns

Poland's $700M Microsoft deal sparks EU digital sovereignty concerns

Microsoft Vice Chair and President, Brad Smith with the Prime Minister Republic of Poland, Donald Tusk

Microsoft’s $700 million cloud, AI, and cybersecurity investment in Poland threatens Europe’s digital sovereignty and national security, warns Kai Wawrzinek, co-founder of Impossible Cloud Network.

This week, Microsoft signed a PLN2.8 billion ($700 million) deal with the Polish government to expand its hyperscale infrastructure and collaborate with the country’s National Defence force on cybersecurity.

Wawrzinek argued the agreement underscores the need for European companies to fund EU-based infrastructure projects rather than ceding control to US tech giants.

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“It’s a national security concern when Europe’s cybersecurity systems increasingly run on US companies’ cloud systems,” Wawrzinek told Capacity. “I’d like to see European companies stepping in to plug the gap in funding and support EU-based infrastructure, rather than allowing US giants to dominate the global AI, cloud and cybersecurity landscape.”

Poland is looking to strengthen its cybersecurity measures in the wake of increased Russian aggression following its illegal invasion of Ukraine.

Last year, Krzysztof Gawkowski, Poland’s Deputy Prime Minister and Minister of Digital Affairs told local news that Belarusian and Russian actors have been conducting cyber warfare inside Poland, attempting to obtain access to critical information.

Given its proximity, Poland has been a close ally to Ukraine, taking in droves of refugees and providing billions of Euros in military aid.

Wawrzinek said the investment was welcome but said it expressed discouragement that it was coming from a US tech giant.

“This undermines Europe’s digital sovereignty because even if the infrastructure - like data centres, for example - will be physically located within the EU, Microsoft can’t guarantee that the data will remain strictly within Europe’s borders,” the co-founder said. “This violates Europe’s GDPR rules, exposing European businesses to data breach risks, and raises serious compliance and security concerns for organizations that depend on EU data residency requirements.”

Donald Tusk, Poland’s Prime Minister, said the investment would provide Poles with “access to the most modern tools and opportunities offered by the best in the world”.

In addition to cybersecurity support and infrastructure expansion, the investment also covers AI training in Poland.

“We appreciate the critical role that Poland plays in the European Union, and we are committed to helping to protect its cybersecurity and cyber resilience,” said Brad Smith, vice chair and president of Microsoft.

Poland becomes the latest in an ever-growing list of markets Microsoft has pledged to expand AI and cloud infrastructure, including India, Spain, Mexico, and Italy, among others.

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