Microsoft Hyper-V is a hypervisor built into Windows Server and, in the Pro, Enterprise and Education editions, into Windows. Organisations use it to run virtual machines on their own hardware, with Windows, Linux and FreeBSD as guest systems. Windows Server adds enterprise features such as live migration, failover clustering, Hyper-V Replica for disaster recovery, shielded virtual machines and Storage Spaces Direct for hyperconverged storage. Management is done with Hyper-V Manager, PowerShell, Windows Admin Center or System Center Virtual Machine Manager.
Microsoft is headquartered in the United States and Hyper-V is proprietary software. The customer installs and operates it, so virtual machines and their data stay in the data centres the organisation chooses, including within the EU. Microsoft does not host the workloads; links to Azure, such as Azure Site Recovery and Azure Local, are optional. For a European organisation, the dependency lies mainly in the licensing of a US vendor and in the management and backup tooling around the hypervisor, not in the physical location of the data.