Microsoft Launches New Denmark East Cloud Region to Boost Digital Sovereignty and Green Transition
March 26, 2026
Microsoft has officially inaugurated its new Denmark East cloud region, marking a significant expansion of its European digital infrastructure designed to meet growing demand for secure, sustainable, and locally-resident cloud services. The launch strengthens Denmark's position as a digital hub and underscores the strategic role of hyperscale cloud investment in regional economic and environmental goals.
The new region, operational immediately, comprises three state-of-the-art datacenter campuses located in the municipalities of Høje Taastrup, Køge, and Roskilde on Zealand. It is engineered to provide Danish organizations across sectors—from healthcare and finance to manufacturing and the public sector—with local access to the full suite of Microsoft cloud services, including Azure and Microsoft 365. A core feature is guaranteed local data residency, ensuring customer data remains stored and processed within Denmark under EU legal frameworks, including GDPR.
The economic footprint of this investment is substantial. According to an IDC analysis, Microsoft and its ecosystem partners are projected to spend approximately $4.5 billion in Denmark on local services and products over the next four years. The research further indicates that for every $1 Microsoft generates in cloud revenue, over $6 is created within the wider partner ecosystem—a figure expected to rise to nearly $8 by 2029. Mette Kaagaard, General Manager of Microsoft Denmark & Iceland, stated, “With the opening of Denmark East, we are strengthening Denmark’s digital resilience with a secure-by-default foundation that gives customers greater control, low latency, and local data residency.”
The environmental design of the region aligns with Microsoft’s broader sustainability commitments. The facilities are built for zero water use in cooling, target LEED Gold certification, and are engineered to achieve a power usage effectiveness (PUE) of 1.16. A key innovation is the integration of waste heat recovery; the Høje-Taastrup site is Microsoft’s first at-scale project of its kind in Denmark, with capacity to supply heat for approximately 6,000 local homes. The company has also secured power purchase agreements for 130 MW of annual renewable energy capacity in Denmark and utilizes hydrotreated vegetable oil (HVO) for backup power. IDC estimates that shifting from on-premises infrastructure to these cloud services could reduce CO₂ emissions by nearly 88,000 metric tons over four years.
Local municipal leaders have welcomed the development, highlighting its multi-faceted benefits. Kurt Scheelsbeck, Acting Mayor of Høje Taastrup, noted the positive effects on local jobs and skills development, while Ken Kristensen, Mayor of Køge Municipality, pointed to the project's future-proof nature and its planned contribution of surplus heat to the district heating network.
For customers, the region offers enhanced digital sovereignty controls. It operates within the EU Data Boundary and is supported by Microsoft’s European Digital Commitments, providing legal assurances beyond baseline compliance. Ulrik Have, CIO Technology at financial services group Nykredit, commented, “Microsoft’s new datacenter region in Denmark enables us to keep data local, reduce complexity, and lower latency… while maintaining the flexibility to deliver new digital solutions for our customers.”
The launch represents a long-term commitment to Denmark's digital ecosystem, combining advanced infrastructure with community partnerships focused on digital skills, biodiversity, and social inclusion.
Source: microsoft
