Microsoft plans to build out its cloud and artificial-intelligence operations in the EU, including with an expansion of its data-center network, as businesses in the bloc pressure policymakers to protect EU tech sovereignty.

Microsoft has come out and opposed to any US government orders to suspend European cloud operations, viewing such a move as highly unlikely but a real and relevant concern. In a blog post, Microsoft President Brad Smith confirmed the company would sue if ordered to halt services in Europe amid ongoing geopolitical tensions and trade disputes.

Microsoft promised on Wednesday to legally defend its European operations against any government interference, addressing mounting concern among European customers about potential service disruptions amid escalating transatlantic trade tensions.