Microsoft says that by building two data centres in the UK next year, it will be able to guarantee British customers data residency in Great Britain, the BBC reports.
The move is, in part, an attempt to address privacy watchdogs' concerns about "data sovereignty", said Scott Guthrie, Microsoft's cloud enterprise group chief.
"We're always very clear that we don't move data outside of a region that customers put it in," he told the BBC.
Guthrie highlighted how in some cases – such as healthcare, national defence and public sector workloads – there are a variety of regulations that require the data stays in the UK.
In creating the two UK data centres, which will allow the software giant to offer its cloud computing service from Britain for the first time, "we can say this data will never leave the UK, and will be governed by all of the local regulations and laws," Guthrie added.
Amazon has also committed itself to multiple UK data centres, although it has not yet made clear just how many centres it plans to build.
It's chief technology officer, Werner Vogels, said that customers could expect quick, low-latency access to websites, mobile applications, games, SaaS [software as a service] applications, big data analysis, internet of things (IoT) applications, and more.
Microsoft, which lists Tesco, Marks & Spencer & Pizza Hut as clients, has also announced plans to offer its Azure and Office 365 cloud services from two German data centres controlled by a third-party.
"Microsoft will not be able to access this data without the permission of customers or the data trustee, and if permission is granted by the data trustee, will only do so under its supervision," it stressed.