Microsoft announced on November 5 that Claude processing in Copilot is planned to move inside the EU Data Boundary for organisations in the European Union and the European Free Trade Association by the end of 2026. It is a future target, not a completed migration, and the announcement names no US-specific rollout.

The planned change covers Claude models across Copilot experiences, including Copilot Chat, Copilot in Microsoft 365 apps, Copilot Cowork and Copilot Code. Microsoft says organisations in the EU and EFTA already using Claude will transition automatically once the processing change is available.

Enabling Claude and moving its processing are separate steps. Claude is off by default in the EU and EFTA: an AI Administrator or Global Administrator enables Anthropic in the Microsoft 365 admin centre and assigns access to everyone or to selected users and groups. The EU Data Boundary is a regional commitment covering the EU and EFTA as a whole — different from Microsoft's separate in-country data-residency option for data at rest in 10 EU and EFTA countries.