Report claims Microsoft’s Azure used by Israeli military for mass surveillance in Gaza

New Delhi: A joint report by The Guardian and +972 Magazine has sparked fresh controversy over Microsoft's alleged ties with Israeli military surveillance operations, particularly in Gaza.

For months, Microsoft employees have raised concerns over the company’s possible involvement in Israel's ongoing military actions. Now, a new report suggests that Microsoft’s cloud platform, Azure, has been used by Israel’s elite military intelligence unit, Unit 8200, to store and manage vast amounts of surveillance data, including recordings of millions of Palestinian phone calls.

According to the investigation, this data includes phone communications from both Gaza and the West Bank, and is reportedly stored on Azure servers located in Ireland and the Netherlands. The surveillance system allegedly became operational in 2022.

Nadella's alleged meeting with Israeli spy chief

One of the most striking claims in the report is that Microsoft CEO Satya Nadella met with Yossi Sariel, head of Unit 8200, around 2021. The meeting was reportedly aimed at securing Nadella's support for using Microsoft’s cloud technology to bolster Israel's intelligence infrastructure.

While Microsoft acknowledges its partnership with the Israeli military, it denies that Azure or any of its technologies have been used directly in the Gaza offensive.

In a blog post earlier this year, the company stated, "Based on our review, we have found no evidence that Microsoft’s Azure and AI technologies, or any of our other software, have been used to harm people.”

A spokesperson told The Guardian that Nadella was unaware of the nature of the data being stored and that Microsoft had no knowledge of any civilian surveillance being conducted using its platform.

Internal backlash from Microsoft employees

The revelations have intensified criticism from within the company. In May 2025, a Microsoft engineer, Joe Lopez, disrupted Nadella’s keynote at the Build developer conference. In a follow-up email to staff, Lopez urged Microsoft to cut technological support to Israel and demanded the company take a clear stand on the issue.

In a public post, Lopez wrote, "If leadership continues to ignore this demand, I promise that it won’t go unnoticed. The world has already woken up to our complicity and is turning against us. The boycotts will increase and our image will continue to spiral into disrepair.”

The report also noted that Microsoft had *restricted the use of the word “Palestine” in internal chats following employee protests, though it has not commented officially on this policy.

Microsoft’s silence on Gaza offensive draws scrutiny

While Nadella condemned the October 7 Hamas attacks on Israel in a tweet, he has not made any public comment on the Gaza conflict or Microsoft’s alleged involvement. His silence has been sharply criticised by employees and observers alike, especially as calls for transparency and accountability grow louder.