Action may be required: New setting controls where your Microsoft 365 data is stored

[What and why:]

To help maintain a high-performing service in the EU/EFTA, Microsoft is introducing a new setting: Store Microsoft 365 customer data in-country. This setting gives organizations control over whether Microsoft 365 customer data is stored in-country or regionally within the EU Data Boundary.

Your customer data remains within the EU Data Boundary whether the setting is enabled or disabled, and your privacy, security, compliance, and encryption commitments are unchanged.

The setting is disabled by default for your tenant, which means your customer data storage may shift from in-country to regional storage within the EU Data Boundary. You remain in control — you can review or change this setting at any time in the Microsoft 365 admin center.

[Rollout schedule:]

1. September 14, 2026: The setting becomes visible and actionable in the Microsoft 365 admin center. Organizations have 90 days to review and adjust the setting.
2. December 14, 2026: Your selection becomes effective.

[Impact on your organization:]

Who is affected

1. Admins managing Microsoft 365 tenants in France, Germany, Norway, Sweden, or Switzerland.

Services affected

1. Exchange Online, SharePoint, OneDrive, Microsoft Teams, Microsoft Copilot, Microsoft Copilot Chat.

What will happen

1. The setting is disabled for your tenant, which means Microsoft may store your Microsoft 365 customer data regionally within the EU Data Boundary rather than only in-country.
2. Enabling the setting keeps your Microsoft 365 customer data stored in-country.
3. Between September 14 and December 14, 2026, your customer data location does not change. Customer data may be stored regionally within the EU Data Boundary only after December 14, 2026, if the setting is still disabled.
4. You can change your selection at any time, both during the 90-day notice period and after December 14. If you enable the setting after December 14, 2026, restoring in-country storage may take approximately 6 months to complete.

[Action required / recommendations:]

Review your setting and update it if needed before December 14, 2026:

1. Sign in to the Microsoft 365 admin center
2. Go to Settings > Org settings > Organization profile > Data location > Commitments
3. Confirm that your current setting aligns with your organization's needs

If you take no action, the setting remains disabled and Microsoft may store your customer data regionally within the EU Data Boundary from December 14, 2026.

Learn more

1. Data residency setting – Microsoft Learn
2. Microsoft Product Terms
3. EU Data Boundary