Microsoft Cloud Used by Israel's Unit 8200 for Palestinian Surveillance and Airstrike Planning, Leaks Reveal

Israel's military intelligence Unit 8200 used a customised version of Microsoft's Azure cloud platform to conduct mass surveillance on Palestinians and help plan lethal airstrikes during the recent war, according to leaked documents and whistleblower accounts.

The collaboration, reportedly authorised by Microsoft CEO Satya Nadella, began in 2022 and allowed the Israeli unit to record and store millions of phone calls from Gaza and the West Bank. Internal sources described the system as enabling an unprecedented scale of monitoring, far beyond previous capabilities.

Building a Cloud for Military Surveillance

In late 2021, Yossi Sariel, then commander of Unit 8200, met Nadella at Microsoft's Seattle headquarters to seek support for moving vast amounts of classified Israeli intelligence onto Azure.

The result was a customised and segregated cloud environment designed specifically for Unit 8200's surveillance needs. Internal company documents show Nadella described the project as 'critical' and set a goal for up to 70 per cent of the unit's intelligence data to be hosted on Microsoft's cloud.

According to The Guardian, this system helped the unit bypass existing server limitations and achieve a monitoring capacity described internally as 'a million calls an hour'.

Millions of Phone Calls Stored

Before adopting Microsoft's cloud technology, Unit 8200 stored calls from only tens of thousands of Palestinians considered suspects. With Azure's capacity, the scope expanded to millions of calls daily, indiscriminately covering much of the Palestinian population.

The recordings include calls to both Israeli and international numbers. While audio is typically retained for about a month, it can be stored for longer if needed for intelligence reviews.

Sources inside the unit told +972 Magazine that the recordings were not only used for intelligence gathering but also for policing — including arrests, blackmail, and targeted killings.

Cloud Technology in Airstrike Planning

Leaked intelligence indicates that Microsoft's Azure cloud also supported lethal military operations in Gaza. Unit 8200 reportedly used the system to listen to calls made near planned strike zones, refining targeting decisions ahead of airstrikes.

The platform underpinned AI-driven targeting recommendation tools, developed during Sariel's leadership, which were deployed in major military campaigns.

While these systems enabled more precise targeting, they were also part of operations that killed tens of thousands of civilians. They did not prevent surprise attacks against Israel, including the Hamas assault in October 2023.

Employee and Investor Backlash

Microsoft is facing mounting pressure from staff and shareholders over its ties to Israel's military. In 2025, employee protests took place over the company's role in providing cloud and AI services linked to surveillance and military actions against Palestinians.

Major investors holding millions in Microsoft shares have called for greater oversight to prevent human rights violations. Microsoft has maintained that it found 'no evidence' its technology was directly used to harm civilians and claims it was unaware of the specific surveillance methods employed. However, leaked internal files and whistleblower testimony suggest the collaboration was far more direct than the company has publicly acknowledged.

Technology, Ethics and Accountability

Microsoft's partnership with Unit 8200 highlights the growing entanglement between global technology corporations and military operations. While the deal advanced Microsoft's cloud market ambitions, it has also placed the company at the centre of a contentious debate over corporate ethics, transparency and responsibility in times of war.

The revelations have prompted urgent questions over how far technology firms should go in supporting government and military clients, especially in contexts where their products may be linked to human rights abuses.