The software giant's Azure cloud service is locked in a fierce battle with rivals Amazon Web Services and Google Cloud, and the new data centres would help satisfy German concerns about data staying within their country's borders.
According to the report, Microsoft has previously offered cloud services in Germany in partnership with Deutsche Telekom, along with other European data centers in Dublin and Amsterdam.
An advertisement is played on a set of large screens at the Microsoft office in Cambridge Thomson Reuters FRANKFURT (Reuters) - Microsoft is opening two cloud data centers in Germany at a cost running to more than 100 million euros ($120 million), two news publications reported on Tuesday, citing industry sources.
The media reports state that demand for the German cloud had been weak because of higher pricing and a lack of flexibility in moving data. Microsoft did not specifically comment on the new German data centers but pointed to those partnerships, telling Reuters the company is happy for offering both German and global cloud services.
"Many customers with particularly sensitive needs, for example in the public sector, prefer our German cloud offering", the spokesman told Reuters in an emailed response. "We give customers the choice", the spokesperson said.
Microsoft has been gradually expanding its cloud infrastructure around the globe.