Microsoft has terminated some cloud services for an intelligence unit of the Israel Defense Forces (IDF).

The hyperscaler confirmed the decision following a report by The Guardian that Unit 8200 was using its Azure cloud storage services to store data on millions of phone calls made by Palestinians across Gaza and the West Bank.

Microsoft president Brad Smith said in a message to staff that some services for Unit 8200 had been disabled after evidence was found that supports elements of The Guardian’s reporting.

“We have reviewed this decision with [the] Israel Ministry of Defense (IMOD) and the steps we are taking to ensure compliance with our terms of service, focused on ensuring our services are not used for mass surveillance of civilians,” Smith wrote.

Microsoft has been reviewing the allegations following the report, with some staff having protested against Microsoft's work with Israel's military. In August, Smith’s office was occupied by several protesters who were subsequently arrested.

The Microsoft president confirmed that while a decision has been made regarding Unit 8200, the company’s review is still ongoing, with more information to be shared in the coming weeks.

The decision has no impact on Microsoft’s other activities in Israel or other countries in the Middle East, with Smith stating: “This step is aimed explicitly at combating mass surveillance.”

“Microsoft will continue to be a company guided by principles and ethics,” Smith told employees. “We will hold every decision, statement, and action to this standard. This is non-negotiable.”