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Overview

As of June 2026, Microsoft has changed how new Power Platform and Dynamics 365 environments are provisioned. Instead of selecting a specific hosting country or datacentre region, customers now select a Macro Region Geography and Microsoft automatically chooses the datacentre location within that boundary based on capacity, availability and performance considerations.
This change applies to new environment provisioning and is designed to improve scalability and resilience while maintaining Microsoft's data residency commitments.


What Is a Macro Region Geography?

A Macro Region Geography is a data residency boundary that contains one or more countries or datacentre regions. When creating a new environment, customers select the geography rather than a specific country. Microsoft then decides where the environment will be hosted within that geography.
For example, selecting Europe & UK allows Microsoft to provision the environment in any eligible datacentre region within that boundary, such as: United Kingdom, Ireland, France, Germany, Netherlands, Norway, Sweden, Switzerland, Italy and Poland.
Have a look at Microsoft’s macro region and region table for more info.


What Has Changed?


Previously

Customers could choose a specific hosting location when creating an environment, such as:

  • United Kingdom

  • France

  • Germany

  • Switzerland

Now

Customers choose a wider geography, such as:

  • Europe & UK

  • EU & EFTA

  • North America

  • Asia-Pacific

Microsoft then automatically allocates the environment to a datacentre region within that geography.


Does My Data Still Stay in Europe?

Yes.
If a customer selects a European macro region, Microsoft states that customer data remains within the selected macro region geography boundary.
For most organisations, this means the overall data residency position remains substantially the same, even though the exact hosting country may vary.

Can I Choose a Specific Country?

Not under standard licensing.
Customers requiring their environments to be hosted in a specific datacentre region must purchase Advanced Data Residency (ADR) and meet Microsoft's eligibility requirements. Microsoft states that ADR must be enabled for 100% of eligible Microsoft 365 seats within the tenant before specific datacentre region selection becomes available. [learn.microsoft.com], [mc.merill.net], [licensing.guide]


Important Considerations

UK Hosting Is No Longer Guaranteed

Selecting a European geography does not guarantee that the environment will be hosted in the UK.
A UK-based customer could be provisioned into another eligible European location such as Switzerland, France or Germany. This is expected behaviour under Microsoft's new provisioning model. [learn.microsoft.com], [licensing.guide]


Existing Environments

Microsoft does not currently expect existing environments to be affected. Existing environments should continue to remain in their current datacentre region. [learn.microsoft.com], [mc.merill.net]


EU Data Boundary Requirements

Customers with specific requirements relating to the Microsoft EU Data Boundary should select the European Union (EU) and European Free Trade Association (EFTA) macro region rather than Europe & UK. Microsoft specifically distinguishes these options. [learn.microsoft.com], [mc.merill.net]


What Does Mercury Recommend?

For most customers, this change is expected to represent a low operational and compliance risk, as customer data continues to reside within the selected geographic boundary.
However, customers should discuss their requirements with Mercury if they have:

  • Contractual hosting commitments

  • Country-specific data residency obligations

  • Regulatory requirements mandating a particular country

  • Data sovereignty concerns

  • Existing architecture that depends on a specific Azure region

In these scenarios, Advanced Data Residency may need to be considered. [learn.microsoft.com], [Macro Region | SharePoint]



Frequently Asked Questions

Will my data leave Europe if I select a European macro region?

No. Microsoft states that data remains within the selected macro region geography boundary. [learn.microsoft.com], [mc.merill.net]

Can Mercury guarantee UK hosting?

No. Microsoft now controls the datacentre allocation unless Advanced Data Residency has been purchased and configured. [learn.microsoft.com]

Can Mercury choose the country on my behalf?

No. Under the standard licensing model neither Mercury nor the customer can choose the exact hosting country. Microsoft performs the allocation automatically. [learn.microsoft.com]

Should I purchase Advanced Data Residency?

Only if you have a genuine business, contractual or regulatory requirement for hosting in a specific country or datacentre region. For many customers, the standard macro region model will be sufficient. This recommendation is Mercury guidance and not a Microsoft requirement. Mercury customers should assess their own compliance obligations.

Sources

This article is intended as general guidance and should not be considered legal or compliance advice. Customers with specific regulatory or contractual requirements should seek appropriate professional advice.