Azure Communication Services is Microsoft's communication platform within Azure, offering APIs and SDKs for voice, video, chat, email and SMS. The SMS part lets developers send and receive text messages from applications, for example for notifications, reminders and verification codes. Inbound messages are delivered through Azure Event Grid, and workflows can be built with Azure Logic Apps. The service is delivered solely as a Microsoft cloud service.
Microsoft is headquartered in Redmond, United States, and is therefore subject to US law such as the CLOUD Act. When creating a resource you choose a geography, including Europe, France, Germany, Norway and Switzerland. Resource data stored at rest stays in that geography, although Microsoft states that data may transit or be processed in other geographies. According to the documentation, SMS content is processed only temporarily for delivery and is not retained afterwards. A European organisation should judge for itself whether this is sufficient for the sensitivity of its messages.