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Let's look at these at these two facts: 1) Many companies have pulled their data from US-based data centers for fear of government intrusion after the Snowden

Let's look at these at these two facts: 1) Many companies have pulled their data from US-based data centers for fear of government intrusion after the Snowden revelations. 2) The future of Microsoft's server business is in the cloud and they have (likely) told customers their data is safe if stored in the EU Thus it stands to reason that in order to keep customers and make money, they are motivated to win this case.

_delirium 12y ago
On #2, they do tell their customers that, in fact it's even a significant component of their cloud marketing. One of their attempted selling points vis-a-vis Google Apps for Business is that going with Microsoft for things like hosted email is safer from an EU-compliance point of view.