How does Microsoft 365 handle data sovereignty in Australia?
Microsoft operates local data centres in Australia East (New South Wales) and Australia Southeast (Victoria), collectively known as the “Australia Geo”.
Suppose your organisation’s Microsoft 365 tenant is provisioned within the Australia Geo. In that case, most core service data, including Exchange Online, SharePoint Online, OneDrive for Business, Teams chat and files, is stored exclusively within Australian boundaries. Certain workloads not currently resident in Australia (e.g. Viva Engage, Forms, and some Viva features) may remain hosted outside Australia depending on the region and service.