India will soon be one of the first four countries in the world to get local data processing for Microsoft 365 Copilot, the company’s AI-based work assistant. The update will be available by the end of 2025, placing India alongside Australia, the United Kingdom, and Japan.
This means all the information shared with Microsoft 365 Copilot in India will be processed and stored within the country. The change will help Indian companies, government departments, and regulated sectors like banking and healthcare follow India’s data protection and localisation rules.
Local data processing also enhances performance as the data residing within India will enable faster and smoother response times in applications like Word, Excel, PowerPoint, Outlook, and Teams. This can also increase the usage of Copilot by Indian firms as it improves trustability.
Microsoft shared that this move is part of its wider plan to support data sovereignty across the world. After launching in these four countries, the company will expand local processing to 11 more countries in 2026, including Canada, Germany, Italy, Malaysia, Spain, South Africa, and the United States.
The new setup implies that Copilot’s prompts and responses will stay within each country’s borders. This gives organisations stronger control over their information and ensures better safety and trust in Microsoft’s AI services.
For India, the change comes as part of Microsoft’s larger push to grow its AI and cloud presence in the country. The corporation already revealed a huge financial commitment to Indian data centres and a new cloud region planned to be built in Hyderabad in 2026. This will allow other companies to access AI tools while complying with the regulations regarding local data.
Experts say this step shows that Microsoft is serious about data privacy and compliance. Indian firms working with sensitive data can now rely on Microsoft 365 Copilot while knowing their information will not leave the country.
In short, the local data processing for Microsoft 365 Copilot in India will improve privacy, increase security, meet compliance needs, and make AI tools faster and more useful. The rollout marks a big step in India’s digital journey as global tech firms focus more on local trust and data safety.
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