Microsoft to Enhance Data Processing for Copilot in India by 2025

Microsoft has announced plans to implement in-country processing for Microsoft 365 Copilot interactions in India and three other countries by the end of 2025. This initiative aims to enhance customer control over AI data and improve performance by reducing latency. The company will expand this capability to eleven additional countries by 2026. This move is particularly beneficial for customers in regulated industries, providing them with better governance and compliance options. With India's data center capacity expected to grow significantly, this development aligns with the country's digital transformation efforts.
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Microsoft to Enhance Data Processing for Copilot in India by 2025

Microsoft's New Data Processing Initiative


New Delhi, Nov 5: On Wednesday, Microsoft, the American technology leader, revealed plans to implement in-country processing for Microsoft 365 Copilot interactions in four nations, including India, by the conclusion of the calendar year 2025.


The company also intends to extend this feature to an additional eleven countries, emphasizing that local data processing for Microsoft 365 Copilot will provide users with enhanced control over their AI-related data.


Moreover, processing data locally can lead to improved performance by minimizing latency, thereby offering a more efficient Copilot experience, according to the company's statement.


By the end of 2025, users in Australia, the United Kingdom, India, and Japan will have the option to have their Copilot interactions processed within their own borders.


In 2026, this capability will be available in Canada, Germany, Italy, Malaysia, Poland, South Africa, Spain, Sweden, Switzerland, the United Arab Emirates, and the United States.


Microsoft highlighted that local processing allows interaction data to be managed in data centers located within the customer's country, granting them greater authority over their information.


This initiative aims to assist customers, especially those in government and heavily regulated sectors, in utilizing Microsoft 365 Copilot with added governance, security, and compliance options.


"A map detailing Microsoft's commitments regarding data residency and processing, showcasing the countries where local data processing will be accessible by the end of 2025 and in 2026," the announcement stated.


Currently, Microsoft provides in-country data residency for Microsoft 365 and Microsoft 365 Copilot users in 27 nations, along with in-region data residency and processing for countries within the European Union (EU) Data Boundary.


According to a report by Trade Brains, India's data center capacity is projected to increase from the existing 1.2 GW to approximately 8 GW by 2030, growing at an annual rate of nearly 17%, fueled by the nation's swift digital transformation, rising internet usage, and increasing demand for AI and cloud services.