The Microsoft Azure disruptions in the Middle East have been linked to recent fiber cuts in the Red Sea, Microsoft confirmed on Saturday. The tech giant explained that while services remain operational, users in the region should expect slower connections due to rerouted traffic.
Microsoft emphasized that global operations are unaffected. “We do expect higher latency on some traffic that previously traversed through the Middle East. Network traffic that does not traverse through the Middle East is not impacted,” the company said in a statement. Daily updates are promised until the issue is resolved.
Azure, Microsoft’s flagship cloud computing platform, ranks as the second-largest provider worldwide after Amazon Web Services (AWS). It powers governments, corporations, and individuals with services ranging from app development to enterprise management.
The disruption comes as regulators scrutinize the dominance of cloud leaders. In July, the UK’s Competition and Markets Authority (CMA) reported that Microsoft and Amazon together control 70–80% of the UK cloud infrastructure market. It flagged limited consumer choice and high entry barriers, prompting calls for an antitrust probe under new UK digital market rules.
Despite regulatory pressure, Microsoft continues to post strong results. In July, the company reported fourth-quarter revenue of $76.4 billion, an 18% increase from the prior year, far surpassing analyst estimates of $73.8 billion. Net income surged 24% to $27.2 billion, while earnings per share reached $3.65, well above the expected $3.38.
Microsoft is also expanding its AI offerings on Azure. In May, it added Elon Musk’s xAI Grok 3 and Grok 3 mini models to the Azure AI Foundry marketplace. These tools come with the same service-level agreements as other Microsoft products, reinforcing Azure’s role as a hub for open AI models.
For now, the Microsoft Azure disruptions underscore the fragility of global internet infrastructure, especially in regions reliant on undersea cables. While rerouting keeps services online, the higher latency highlights how vital these cables remain for seamless cloud operations.
