US immigration authorities are packing more data into Microsoft’s cloud than ever before, signaling a major digital shift in how the agency operates.
Leaked documents obtained by The Guardian, +972 Magazine, and Local Call reveal that Immigration and Customs Enforcement (ICE) has significantly increased its reliance on Microsoft’s Azure cloud platform. Between July 2025 and January 2026, the amount of data the agency stored on these servers more than tripled.
This digital expansion happened right as the agency received a historic $75 billion budget boost, making it the highest-funded law enforcement body in the country.
The scale of this data surge is significant. In July 2025, ICE was storing roughly 400 terabytes of data on Azure. By January 2026, that number climbed to nearly 1,400 terabytes. To put that in perspective, +972 Magazine noted that if this data consisted entirely of photos, it would be the equivalent of about 490 million images.
While the documents don’t explicitly say what kind of information is being stored, they do show that ICE is using more than just basic storage. The agency is reportedly using “blob storage” for raw data and renting “virtual machines,” which are essentially high-powered computers running in the cloud and operated remotely. This allows the agency to run complex software without the need for massive on-site physical servers.
AI and analytics tools
Beyond simple storage, the reports suggest ICE is leaning heavily into Microsoft’s artificial intelligence capabilities. The agency appears to be using tools like Azure AI Video Indexer and Azure Vision. These services allow users to analyze images, read text, and even detect specific objects, faces, or emotions within audio and video files.
The documents also indicate that ICE has expanded its use of Microsoft’s standard productivity suite, which includes document management tools and an AI chatbot. These tools help the agency’s workforce, which has more than doubled since early 2025, organize and analyze the vast troves of data it collects.
Microsoft’s stance and policy
Microsoft has maintained a firm public position regarding how its technology is used. The company emphasizes that its contracts are often managed through third-party partners and resellers rather than direct agreements.
A spokesperson for Microsoft told The Guardian that the company “provides cloud-based productivity and collaboration tools to DHS and ICE, delivered through our key partners.”
Addressing concerns about how these tools are applied in the field, the spokesperson added, “Microsoft policies and terms of service do not allow our technology to be used for the mass surveillance of civilians, and we do not believe ICE is engaged in such activity.”
The tech giant also suggested that the responsibility for setting technology-related boundaries rests with lawmakers.
The spokesperson stated, “There are currently many public issues relating to immigration enforcement, and we believe Congress, the executive branch, and the courts have the opportunity to draw clear legal lines regarding the allowable use of emerging technologies by law enforcement.”
Internal friction and industry pressure
The relationship between big tech and federal law enforcement remains a point of contention for many employees.
Within Microsoft, some workers have filed internal ethics reports, according to sources mentioned by The Guardian. These employees expressed concern that the company’s technology might be enabling operations involving excessive force or unlawful activity.
Microsoft is not the only company facing this kind of internal pressure. Amazon and Google have also seen protests and petitions from employees demanding that they cut ties with immigration authorities. At Google, a petition signed by over 1,300 workers stated, “DHS is violating civil and national law as well as civil and human rights. We must end our complicity in powering them.”
Despite internal pushback, the industry trend shows that federal agencies are increasingly moving away from traditional physical hardware toward the scalability and analytical power offered by major cloud providers.
Also read: Britain’s proposed digital ID scheme is facing resistance as critics warn about privacy, access, and trust in centralized identity systems.