Microsoft adds EU access oversight and offline AI to its sovereign cloud

Microsoft announced new features for its Sovereign Cloud aimed at EU and EFTA customers, including enhanced access oversight by a trusted partner, immutable access logs, and the ability to hold master encryption keys on customer hardware. The update also introduces offline AI tools like Foundry Local and GitHub Enterprise Local, enabling AI model operation on-premises. These capabilities will be showcased at Microsoft Ignite 2026, with several partners supporting the initiative.