The announcement came weeks after the European Court of Justice struck down an agreement between the U.S. and European Union that had allowed the transfer of Europeans’ personal data to the U.S. The “Safe Harbor” pact violated the privacy rights of Europeans by exposing them to allegedly indiscriminate surveillance by the U.S. government, according to the court. German data protection authorities, after the ruling, said they wouldn’t allow any new data transfers to the U.S.
Source: Microsoft Offers EU Customers Option to Store Data in Germany – WSJ