Microsoft has blocked Israel’s Unit 8200 from using parts of its cloud and AI services after uncovering that the military intelligence unit was running a vast surveillance program on its Azure platform.
The system had enabled the mass collection of Palestinian civilian phone calls, which were then stored, replayed, and analyzed.
+972 Magazine and Local Call, revealed hat the agency was holding an enormous archive of intercepted communications inside a Microsoft data center in the Netherlands.
Sources said the program, internally described by Unit 8200 as “A million calls an hour,” had accumulated around 8,000 terabytes of data.
Shortly after the investigation appeared, the material was rapidly relocated out of Europe.
The project took shape after a 2021 meeting between Microsoft chief executive Satya Nadella and Unit 8200’s commander at the time, Yossi Sariel.
While the agency carried out its own interceptions, Microsoft’s cloud capacity allowed it to store the recordings for long periods and run advanced analysis on them.
Intelligence officials confirmed the same system was later used during the assault on Gaza to assist with strike planning, in addition to its earlier focus on the West Bank.
Microsoft responded to the revelations by launching an external review led by the law firm Covington & Burling.
Its early findings led to a decision to disable the unit’s access to some services.
Brad Smith, the company’s vice-chair and president, told staff in an email that Microsoft had “ceased and disabled a set of services to a unit within the Israeli Ministry of Defense,” including AI tools and cloud storage.
He added: “We do not provide technology to facilitate mass surveillance of civilians.”
The move followed growing pressure from employees and investors concerned about the company’s work for Israel’s military during the ongoing offensive in Gaza.
