Microsoft has cut off some of the services it was providing to the Israeli Ministry of Defense (IMOD).

In a note from Microsoft’s vice chair and president, Brad Smith, that was shared with Microsoft employees last week, Smith said that they had “ceased and disabled a set of services” following the company’s internal review of how IMOD was using its cloud platform.

The review was prompted by an August 2025 investigation by The Guardian, +972 Magazine, and Local Call that found IMOD’s Unit 8200 was using the cloud platform to host audio files from millions of phone calls made by Palestinians.

The publications claim that, through this, Unit 8200 has used Microsoft Azure to facilitate the preparation of deadly airstrikes – including the identification of bombing targets – and “shaped” military operations in Gaza and the West Bank.

Microsoft then launched a review, having previously stated that it had found “no evidence to date that Microsoft’s Azure and AI technologies have been used to target or harm people in the conflict in Gaza.”

Smith noted Microsoft’s policies include prohibiting the use of its technology for the mass surveillance of civilians, writing: “We have applied this principle in every country around the world, and we have insisted on it repeatedly for more than two decades.”

He added that the company does not have access to customer content, due to Microsoft’s own privacy policies

“Since August 15, we have pursued this review by respecting both these principles, as well as the company’s policies, contracts, and customer commitments,” Smith said. “At no point has Microsoft accessed IMOD’s customer content. Rather, the review has focused on Microsoft’s own business records, including financial statements, internal documents, and email and messaging communications, among other records.

“While our review is ongoing, we have found evidence that supports elements of The Guardian’s reporting. This evidence includes information relating to IMOD consumption of Azure storage capacity in the Netherlands and the use of AI services.”

Smith said that Microsoft has notified the IMOD, but that this “does not impact the important work that Microsoft continues to do to protect the cybersecurity of Israel and other countries in the Middle East, including under the Abraham Accords.”

While Microsoft has ended this particular service for the IMOD, US hyperscalers’ partnerships with IMOD have been heavily criticized, including by their own employees.

In Smith’s note, he acknowledged that “many of you [employees] care about this topic.”

Employees of the company have previously staged protests, including following The Guardian investigation, which led to arrests.

It is not only employees who have expressed concern. On July 1, more than 60 shareholders signed a letter calling for the company to publish a report “assessing the effectiveness of its human rights due diligence processes” as a result of Microsoft’s role in the Israel-Palestine conflict.

A protest was also staged by the group Geef Tegengas (Push Back) on the roof of the Netherlands data center, which Microsoft has now confirmed was storing data for the IMOD.

Smith said that the review remains “ongoing” and he will share more information in the coming days and weeks “when it is appropriate to do so.”