Microsoft Sovereign Cloud, formerly Microsoft Cloud for Sovereignty, is a set of capabilities and deployment models for governments and regulated industries with requirements on data residency, compliance and operational sovereignty. It comes in three models: a Sovereign Public Cloud in Microsoft-operated datacentres within defined boundaries such as the EU Data Boundary, a Sovereign Private Cloud in customer or partner datacentres, and National Partner Clouds delivered with a national partner. Components include the Sovereign Landing Zone with policy-as-code templates, confidential computing, customer-managed keys and Azure Local.
The services are provided by Microsoft Corporation, headquartered in the United States, so this suite too falls under US jurisdiction, including the CLOUD Act. According to Microsoft, data is stored and processed within the EU and EFTA, and operational access is approved by European personnel and recorded in tamper-evident logs. Whether those measures are sufficient depends on an organisation's threat model; the private cloud and partner clouds move part of the control to the customer or to a local partner.