Microsoft denies its technology is used by US ICE for civilian mass surveillance

• ICE tripled its data storage on Microsoft Azure during a six-month period when the agency's budget and workforce rapidly expanded under intensified deportation operations
• Microsoft stated its policies prohibit technology use for mass civilian surveillance and called for Congress and courts to establish 'clear legal lines' on law enforcement's use of emerging technologies
• The controversy follows similar concerns over Microsoft technology used by Israeli military for alleged mass surveillance of Palestinians, which led to employee protests and service suspension

Microsoft Denies ICE Technology Used for Mass Civilian Surveillance

Key Developments:

Microsoft responded to a Guardian report alleging expanded use of its cloud technology by U.S. Immigration and Customs Enforcement (ICE), stating it does not believe its systems are being used for mass civilian surveillance.

Critical Data Points:

• ICE more than tripled data stored on Microsoft's Azure cloud platform in the six months leading to January 2026
• This expansion coincided with ICE's budget increase and rapid workforce growth
• ICE reportedly uses Microsoft's productivity tools and AI-driven products to search and analyze Azure-stored data

Company Position:

Microsoft confirmed it provides "cloud-based productivity and collaboration tools" to the Department of Homeland Security and ICE through key partners. The company emphasized its policies prohibit technology use for mass civilian surveillance and called for Congress, the executive branch, and courts to establish "clear legal lines" regarding law enforcement's use of emerging technologies.

Broader Context:

The controversy emerges amid President Trump's immigration crackdown, which has drawn criticism from human rights advocates over safety concerns and due process issues. ICE declined to comment on specific investigative technologies but confirmed using various technological tools for criminal arrests.

Market Implications:

This marks another instance of Microsoft facing scrutiny over government technology use. In September, the company disabled services for an Israeli military unit following mass surveillance allegations, leading to employee protests and terminations. Tech companies, including Microsoft, have been working to strengthen relationships with the Trump administration during his second term.

The situation highlights growing regulatory risks and reputational challenges for cloud providers serving law enforcement agencies.