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Claude models in Microsoft Copilot will run inside the EU Data Boundary by the end of 2026

Microsoft said on November 5 that Claude models by Anthropic in Microsoft Copilot are coming into the EU Data Boundary. By the end of 2026, organizations in the European Union and the European Free Trade Association will be able to use Claude models across Copilot, including Copilot Cowork, with the data processed inside the boundary, where their Microsoft 365 data is already stored.

The EU Data Boundary is Microsoft's commitment to store and process Microsoft 365 data within the EU and EFTA. Eligible customers there get it in their contract with no opt-in or extra purchase. Until now, European companies had to choose between Claude models and that commitment.

Claude models already work in Copilot Chat, Copilot in the Microsoft 365 apps, Copilot Cowork and Copilot Code. Microsoft says customer data is not used to train foundation models, and admins decide who can use them.

Organizations that already use Claude models in Copilot do not need to do anything, as processing moves inside the boundary on its own once it is available. In the EU and EFTA the setting is off by default. Admins can turn it on for everyone, or for chosen users and groups, in the Microsoft 365 admin center.

What it means for your work

  • If compliance kept Claude off: Plan a pilot now, so you are ready when processing moves inside the boundary.
  • For admins: Turn the models on for one group first, then widen access.
  • For staff: Ask IT which models your Copilot can use before you choose one for a task.

For more on Copilot, see our Microsoft Copilot review.

Sources