Microsoft Blocks Israeli Military’s Use of Its Technology in Mass Surveillance of Palestinians
Exclusive: Technology giant terminates access to cloud and AI services following investigation into secret surveillance programme
Microsoft has cut off the Israeli military’s elite intelligence unit, Unit 8200, from using some of its technology after an investigation revealed the army’s extensive use of the company’s cloud and artificial intelligence (AI) services to conduct mass surveillance on Palestinians in Gaza and the West Bank.
According to sources familiar with the matter, Microsoft informed Israeli officials last week that Unit 8200 violated its terms of service by storing millions of intercepted Palestinian civilian phone calls on its Azure cloud platform. The decision to suspend access to these services followed a joint investigation by the Guardian, Israeli-Palestinian publication +972 Magazine, and Hebrew outlet Local Call, which exposed the covert use of Microsoft’s technology in mass surveillance.
The Surveillance Operation
Unit 8200, often compared to the US National Security Agency, operates Israel’s most advanced signals intelligence system. With Azure’s vast storage capacity and computing power, the unit amassed a repository estimated at 8,000 terabytes of data, containing millions of Palestinian phone calls intercepted daily. Internal sources from Unit 8200 described the system as capable of processing “a million calls an hour.”
The intelligence agency stored this trove of sensitive communication data in a Microsoft data center located in the Netherlands. Shortly after the Guardian’s revelation in August, Unit 8200 reportedly moved the data out of the country, with indications that it planned to transfer it to Amazon Web Services. Neither the Israeli Defense Forces (IDF) nor Amazon has commented on these reports.
Originally centered on the West Bank’s occupied Palestinian population of approximately 3 million, the surveillance system was later used during Israel’s military operations in Gaza. Intelligence sources revealed that the cloud-based platform facilitated the targeting process for aerial bombardments.
Microsoft’s Response and Investigation
The origins of the collaboration date back to a 2021 meeting between Microsoft CEO Satya Nadella and then-commander of Unit 8200, Yossi Sariel, after which a plan was developed to move sensitive intelligence data to Azure.
After the Guardian’s exposé, Microsoft launched an external investigation into its relationship with Unit 8200. The resulting evidence prompted the company to terminate the military unit’s access to specific services, including cloud storage and AI-powered analytical tools.
Brad Smith, Microsoft’s vice-chair and president, addressed staff regarding the decision, emphasizing the company’s firm stance against enabling mass civilian surveillance globally. In an internal email seen by the Guardian, Smith wrote: “We do not provide technology to facilitate mass surveillance of civilians. We have applied this principle in every country around the world, and we have insisted on it repeatedly for more than two decades.”
This decision marks the first instance of a major US technology firm withdrawing services from the Israeli military amidst the ongoing conflict in Gaza.
Context and Reactions
The revelations come amid Israel’s nearly two-year-long military offensive in Gaza, which has resulted in the deaths of over 65,000 Palestinians—predominantly civilians—and severe humanitarian crises. A United Nations commission recently concluded that Israel committed acts amounting to genocide in Gaza, claims Israel rejects but which many international law experts support.
Microsoft’s relationship with the Israeli military has faced mounting pressure from its employees, investors, and activists. Protests have erupted at Microsoft’s headquarters in the US and at European data centers, led by campaigns such as No Azure for Apartheid, urging the company to sever all ties with the Israeli military.
According to a document seen by the Guardian, a senior Microsoft executive notified Israel’s Ministry of Defense that the company had identified evidence corroborating key elements of the investigation and that it was suspending access to services that facilitated the surveillance programme.
Despite the suspension affecting Unit 8200’s access to certain technologies, Microsoft’s broader commercial engagements with the IDF remain intact. The decision also prompts new questions in Israel regarding the practice of hosting sensitive military data on overseas third-party cloud services.
Previous Investigations
This latest development follows an earlier Guardian investigation, published in January, based on leaked documents showing increased use of Microsoft Azure and AI by the IDF during intense phases of the Gaza campaign. At that time, Microsoft had found no evidence of terms-of-service violations. However, the more detailed August investigation prompted the company to reevaluate and take action.
For further information or to provide insights related to this story, contact Harry Davies and Yuval Abraham.
Summary: Microsoft has ceased providing certain cloud and AI services to Israel’s Unit 8200 after uncovering that the unit used these technologies to store and analyze a massive amount of Palestinian civilian phone call data as part of a mass surveillance operation. The move follows a detailed investigation and marks a significant shift amid growing scrutiny over the role of US tech companies in the Israeli-Palestinian conflict.
