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Microsoft did not cut off Israel from its products. On September 25, 2025, it said it had disabled specified subscriptions and services used by a unit within Israel’s Ministry of Defense (IMOD), including access to certain cloud-storage and AI services. The decision followed Microsoft’s review of reports that Israeli military surveillance data about civilians in Gaza and the West Bank had been stored and processed using Azure. Microsoft said its review found evidence supporting elements of those reports.

What Microsoft disabled—and what it did not

Microsoft said it had “ceased and disabled a set of services to a unit within the Israel Ministry of Defense.” It specified that the affected subscriptions could no longer use certain cloud-storage and AI services and technologies. Its public statement did not identify the particular Azure products, name the subscriptions, or say that all Microsoft services to the unit—or to Israel—were stopped.

The measure was not a country-wide cutoff. Microsoft said it continued cybersecurity work for Israel and other Middle Eastern countries, including Abraham Accords partners. That distinction matters: the announcement concerned specified IMOD subscriptions and services, not every Israeli customer or every category of Microsoft technology.

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Why Microsoft acted

Microsoft’s decision followed reporting about an Israeli military intelligence unit’s use of Azure in connection with surveillance of civilians. The Guardian published allegations on August 6, 2025, that an IDF unit used Azure to store phone-call data obtained through broad surveillance in Gaza and the West Bank. Microsoft cited that reporting when describing its review.

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The Associated Press reported that Azure was used to compile, transcribe, translate and search phone calls and text messages obtained through surveillance, and that the results were cross-checked with Israeli in-house AI targeting systems. AP also reported that multiple Azure subscriptions were tied to Unit 8200, an elite Israeli military intelligence unit. These are reported findings, not a court determination.

Microsoft said the evidence it reviewed supported elements of the reporting. It framed its decision around its stated rule against enabling mass surveillance: Microsoft vice chair and president Brad Smith wrote, “We do not provide technology to facilitate mass surveillance of civilians.”

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How Microsoft’s position changed in 2025

  1. May 15: Microsoft said it provided IMOD with software, professional services, Azure cloud services and Azure AI services, including language translation. It said an initial review had found no evidence that Azure or AI technologies had been used to target or harm people in Gaza. The company said that assessment included interviewing dozens of employees and reviewing documents.
  2. August 6: The Guardian published allegations that an IDF unit used Azure to store surveillance-derived phone-call data about civilians in Gaza and the West Bank.
  3. September 25: After further review, Microsoft said it had found evidence supporting elements of the reporting and had informed IMOD it would disable specified subscriptions and services.

The May and September statements describe different stages of Microsoft’s review. The May statement said the company had found no evidence “to date”; the September update reported evidence supporting some of the later allegations and announced a service restriction.

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What AP reported about the scale of use

The Associated Press reported the following figures based on records and reporting about Microsoft services used by the Israeli military. They describe reported activity and contract records; they are not figures Microsoft presented as the measured scope of the services it disabled.

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Reported figure What it refers to Attribution and qualification
Nearly 200 times A reported increase in Israeli military use of Microsoft and OpenAI AI in March 2024 compared with the week before the October 7, 2023 attack. The Associated Press, 2025; reported comparison with that specific week.
More than 13.6 petabytes Data reportedly stored on Microsoft servers by July 2024, roughly twice the amount reported for March 2024. The Associated Press, 2025.
$133 million Value of a three-year Microsoft contract with Israel’s Ministry of Defense that began in 2021. The Associated Press, 2025; contract value and term.
At least 635 Subscriptions listed across Israeli military divisions, units, bases or project codes. The Associated Press, 2025; based on records it reviewed.
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What the review did—and did not establish

Microsoft said its review relied on its business records and did not access IMOD customer content. Its September 25 statement described the review as ongoing, rather than announcing a final conclusion. The available statements therefore establish the company’s stated reason for disabling specified services, but do not provide a full public account of the underlying customer data or a final review finding.

AP reported that Microsoft declined to explain how it would prevent the Israeli military from shifting surveillance activity to other Azure subscriptions. That leaves an important enforcement question unresolved: disabling specified subscriptions does not, by itself, establish whether related activity could move to different accounts or services.

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AP also quoted an Israeli security official, speaking anonymously, who said the Microsoft move would cause “no damage to the operational capabilities” of the Israel Defense Forces. That was the official’s assessment, not an independently verified finding.

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