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Where is our data stored in Dynamics 365?
The question comes up in almost every procurement process, and the answer has several layers.
The data is stored in the geographic region where the environment was created. If Europe is selected when the environment is created, the content is stored within the EU. The region cannot easily be changed later, so this choice should be made carefully at the outset.
Some features, particularly AI features, may process data in other regions even if the data is stored in Europe. Microsoft documents this for each feature. If you plan to enable Copilot features broadly, this point warrants a separate discussion with your data protection officer.
You own the content. Microsoft is the data processor and acts on your instructions under the data processing agreement. This is an important distinction from services that reserve the right to use the content for their own purposes.
In practice, your access controls are more important than geography. Most incidents occur because the wrong person had access, not because of where the server is located.
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