Copilot Compliance Nightmare? Microsoft Suddenly Rolls Out Flex Routing

Microsoft plans to introduce flex routing to handle situations when demand exceeds capacity for Copilot processing in Europe. This could be an issue for Microsoft 365 tenants in the European Union or European Free Trade Association who want to be sure that their data is processed in Microsoft local datacenters and not sent to the U.S. or Australia when available capacity cannot meet the demand for “large language model inferencing”.

https://office365itpros.com/2026/04/07/flex-routing-copilot-europe/