Microsoft 365 on shared hardware

Hi, maybe this isn't the right place, but we're looking for a way to be 100% sure that what a partner would like to do is compliant. They're setting up a physical server in a DC, that will run several VM's.

Each VM will be dedicated to an end-customer. That VM will host VDI or RDS and they will deploy the M365 Business Premium licenses (SCA) that have been purchased by every end customer themselves. Is this compliant? thank you Adriaan