Microsoft Cuts Off Israeli Military’s Use of Its Technology Amid Palestinian Surveillance Revelations
By Harry Davies and Yuval Abraham
Published: September 25, 2025
In a dramatic turn following investigative revelations, Microsoft has terminated access for Israel’s elite military intelligence unit, Unit 8200, to key cloud and AI services. This decision comes after the company confirmed violations of its terms of service related to the mass surveillance of Palestinians in Gaza and the West Bank using Microsoft’s Azure cloud platform.
Background: Secret Surveillance Program Exposed
The Guardian, along with Israel-Palestinian publication +972 Magazine and Hebrew outlet Local Call, uncovered a covert project in which Unit 8200 harnessed Microsoft Azure to collect, store, and analyze millions of cellular phone calls made by Palestinian civilians every day. The surveillance operation spanned Gaza and the West Bank—home to approximately 3 million Palestinians living under Israeli military occupation.
According to insiders, this extensive system amassed as much as 8,000 terabytes of intercepted call data, with a staggering internal motto capturing the project’s scale: “A million calls an hour.” This data was stored securely in a Microsoft datacenter in the Netherlands until shortly after the Guardian’s investigation was published, when it was reportedly moved to the Amazon Web Services cloud platform.
Microsoft’s Response: Cutting Ties with Unit 8200
Late last week, Microsoft informed Israeli defense officials that Unit 8200 had breached the company’s policies by using Azure for mass civilian surveillance. Brad Smith, Microsoft’s vice-chair and president, conveyed the decision to company staff, emphasizing that Microsoft’s technology must not be used to facilitate mass surveillance anywhere in the world.
“We have applied this principle in every country around the world, and we have insisted on it repeatedly for more than two decades,” Smith said in an internal email seen by the Guardian.
The suspension ended a three-year period during which Unit 8200 exploited Azure’s vast storage and AI capabilities to retain and analyze sensitive intelligence materials indiscriminately. The surveillance program enabled Israeli intelligence officers to play back and process phone calls on a mass scale and reportedly assisted in identifying targets in Israel’s ongoing military offensive in Gaza.
Wider Context: Controversy, Protests, and International Scrutiny
Microsoft’s decision was influenced by mounting pressure from employees, investors, and activist groups like No Azure for Apartheid, which staged protests at Microsoft’s headquarters in the US and Europe. The revelations raised ethical questions about the role of major US technology firms in supporting Israel’s military operations amid escalating conflict that has resulted in the deaths of tens of thousands of Palestinians.
A recent United Nations commission of inquiry found that Israel’s actions in Gaza may constitute genocide—a charge Israel has denied. Nonetheless, the international legal community continues to debate the severity and legality of these operations.
Continuing Relationship and Future Implications
While Microsoft has disabled key services facilitating Unit 8200’s mass surveillance, it has maintained its broader commercial relationship with the Israel Defense Forces (IDF), which remains a longstanding client of the company.
This move sparks critical discussions in Israel about the risks of housing sensitive military data on third-party, overseas cloud platforms, especially given the rapid transfer of large datasets following the exposure.
Investigations Spur Corporate Reassessments
The Guardian’s August investigation was based on a joint effort that included leaked files and extensive reporting on Microsoft’s role in supporting Israeli military intelligence. Initially, Microsoft’s May review found no wrongdoing, but subsequent revelations linking the Azure platform to targeting operations inside Gaza have forced a reversal of that stance.
According to an internal communication reviewed by the Guardian, a senior Microsoft official told the Israeli Ministry of Defense: “While our review is ongoing, we have at this juncture identified evidence that supports elements of the Guardian’s reporting.”
This case marks the first known instance of a major US technology firm cutting off access to military services in Israel during the current Gaza conflict, raising important questions about corporate responsibility and compliance with international human rights standards.
Additional Information:
Health officials in Gaza estimate that at least 60,000 Palestinians have died during the ongoing Israel campaign that followed a deadly Hamas attack in October 2023. Women, children, and elderly civilians constitute about 55% of the casualties, highlighting the devastating humanitarian toll.
For further updates and inquiries about this developing story, contact Harry Davies and Yuval Abraham.
