Microsoft disables services to Israel defense unit over reports of mass surveillance in Gaza; all you need to know about tech giant’s big move

In a big move, Microsoft on Thursday (September 26, 2025) said that it has disabled some cloud and AI services used by a unit within the Israeli Ministry of Defense (IMOD). The decision comes after an internal review by the global tech giant found preliminary evidence backing media reports of a surveillance system in Gaza and the West Bank.

The company opened the review after an article by the Guardian alleged activity by a unit of the Israel Defense Forces, Brad Smith, Microsoft's president, said.

According to news agency Reuters, a joint investigation published in early August 2025 by the Guardian, Israeli-Palestinian publication +972 Magazine, and Hebrew-language outlet Local Call reported that an Israeli military surveillance agency used Microsoft’s Azure to store large volumes of mobile phone call recordings from Palestinians in the Israeli-occupied West Bank and Gaza.

What did the investigation reveal

The investigation conducted by The Guardian revealed that Israel relied on the Microsoft cloud for extensive surveillance of Palestinians. While the review is ongoing, Microsoft said it found evidence supporting elements of the Guardian's reporting, including details on IMOD's consumption of Azure storage capacity in the Netherlands and the use of AI services. "We do not provide technology to facilitate mass surveillance of civilians," Smith said in a Microsoft blog.

Microsoft has informed the Israeli defense ministry of its "decision to cease and disable specified IMOD subscriptions and their services, including their use of specific cloud storage and AI services and technologies." The action does not impact Microsoft's cybersecurity services to Israel and other countries in the Middle East, Smith said.

In August 2025, Microsoft fired four employees who took part in protests on company premises over its ties to Israel as the war in Gaza continues. The sacked employees included two who joined a sit-in at the office of the company's president, Reuters reported.

Citing the reasons for the terminations, the tech giant said that they followed serious breaches of company policies and that the on-site demonstrations had "created significant safety concerns."