Microsoft's cloud storage and AI products are relied on heavily by U.S. Immigration and Customs Enforcement (ICE), according to reporting by +972 Magazine, Local Call, and The Guardian. Those outlets obtained files detailing the agency's reliance on Microsoft services and how usage has trended upward.
Between July 2025 and January 2026, ICE reportedly tripled the amount of data held on Microsoft servers. 400 terabytes of data were said to be stored last July. Almost 1,400 terabytes of data are now reportedly stored by ICE on Microsoft servers.
ICE uses a wide range of surveillance tools, including facial recognition, phone trackers, drones, and spyware.
The documents obtained do not list what types of information are stored on the servers. They do, however, indicate ICE uses both Azure and Microsoft AI tools.
While the documents do not indicate if ICE's data is stored on Azure, +972 states the documents show "ICE is using Microsoft’s AI video analysis tools including Azure AI Video Indexer and Azure Vision, which enable customers to analyze images, read text, and detect certain words, faces, emotions, and objects in audio and video files."
ICE has also reportedly increased its usage of Amazon cloud computing between July 2025 and January 2026.
Microsoft has faced scrutiny in the past for how its Azure services were used. Following months of protests, including several at major Microsoft events and on Microsoft campus, the tech giant moved to block the Israel Ministry of Defense (IMOD) from using some cloud AI and Azure services.
That shift came after a report from The Guardian claimed that the Israeli government used Microsoft services to store data and recordings and calls from Palestinians. Microsoft admitted that elements of The Guardian's report were accurate.
"We therefore have informed IMOD of Microsoft’s decision to cease and disable specified IMOD subscriptions and their services, including their use of specific cloud storage and AI services and technologies," said Microsoft President Brad Smith in September 2025.
While the situation regarding IMOD is separate from the recent report related to ICE, there is a noteworthy connection.
When speaking of the IMOD situation, Smith said (emphasis added), "We do not provide technology to facilitate mass surveillance of civilians. We have applied this principle in every country around the world, and we have insisted on it repeatedly for more than two decades."
Since the United States is part of the world, the natural inference would be that Microsoft's policies apply to U.S. federal agencies. The Guardian asked if that was the case. A Microsoft spokesperson stated:
“Microsoft does not comment on the operational use of our technology by specific customers. What we can say is that our approach is consistent globally: We prohibit the use of our technology for mass surveillance of civilian populations, require compliance with law and contract, and use internal review mechanisms to assess and address higher‑risk scenarios.”
Reports claim that several Microsoft employees have raised concerns regarding ICE's use of Microsoft technology. A reported response to Microsoft sources in December 2025 stated that the company did not have current contracts that “support immigration enforcement.”
The tech giant later confirmed in the following month that it has contracts with ICE and DHS (Department of Homeland Security) but that it “does not presently maintain AI services contracts tied specifically to enforcement activities.”
When asked about its contracts with ICE and DHS, a Microsoft spokesperson reiterated to +972, Local Call, and The Guardian that "Microsoft policies and terms of service do not allow our technology to be used for the mass surveillance of civilians," and added that Microsoft "[does] not believe ICE is engaged in such activity."
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