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Microsoft Copilot Data Privacy: What It Sees, and the Alternative

Microsoft 365 Copilot can read whatever the signed-in user can read: mail, files, chats, meetings and SharePoint libraries across the tenant. Microsoft's Enterprise Data Protection promises that prompts and responses are not used to train its models and stay inside the tenant boundary; the risk most organisations actually hit is oversharing, where Copilot surfaces things a user technically had access to but never found. This page explains what the controls do, what they do not, and the alternative: a Nextcloud workspace where AI exists only when you enable it, against models you choose.

Tenant-wide
What Copilot can read
0
AI enabled by default on Nextcloud Hub
Your choice
Models on the Nextcloud Assistant
4
Regions you choose

What Copilot can and cannot do with your data

The promises, and their limits
QuestionMicrosoft 365 CopilotNextcloud Hub
Is tenant data used to train the models?No, under Enterprise Data Protection with a work account; consumer Copilot without a work sign-in is differentNo AI runs unless you enable the Nextcloud Assistant; then only the models you configure see anything
What can it read?Everything the user's permissions allow across Exchange, OneDrive, SharePoint and TeamsNothing by default; the Assistant acts on the files and apps you point it at
Where does processing happen?Microsoft's regions, with EU Data Boundary commitments for EU tenantsOn your instance's region for local models, or the provider you choose for remote ones
Can administrators limit it?Yes: licensing, Purview DLP policies for prompts (rolled out in 2026), sensitivity labels, restricted SharePoint search, Integrated Apps controlsYes: the Assistant is an app you install, scope and remove; on Hub plans it is not enabled
The practical riskOversharing: Copilot finds what permissions already allowPermissions are the same risk on any platform; Nextcloud's folder-based model is easier to audit
Who holds the keysMicrosoft, with customer key options on higher tiersMassiveGRID on Hub plans; end-to-end encryption app on dedicated instances for zero-knowledge folders

Microsoft's Enterprise Data Protection terms and admin controls change; check Microsoft Learn for the current state before relying on this table.

If you stay: what to do before enabling Copilot

Five steps
  1. Audit sharing first. Run a SharePoint and OneDrive oversharing report and fix "Everyone" and "Anyone with the link" permissions. This is the single largest Copilot risk and it existed before Copilot.
  2. Label sensitive content with sensitivity labels so DLP policies for Copilot prompts have something to act on.
  3. Enable Purview DLP for Copilot so prompts containing sensitive data are blocked or not used for grounding.
  4. Restrict SharePoint search to vetted sites while you clean up.
  5. Assign licences deliberately rather than tenant-wide, and make sure nobody uses consumer Copilot with company data, which has no Enterprise Data Protection.

Our Microsoft 365 telemetry guide covers the data Microsoft collects regardless of Copilot.

Where the data lives either way

The region is still the first question

Copilot processes tenant data in Microsoft's regions, with EU Data Boundary commitments for European tenants. A Nextcloud Hub plan puts the workspace in the U.S., E.U., U.K. or Asia at your choice, and a dedicated instance in any MassiveGRID datacenter. For organisations whose Copilot question is really a sovereignty question, the European alternative page is the one to read; the Microsoft 365 alternative page covers the move app by app.

Nextcloud Hub Pricing

Per-user plans on MassiveGRID's Nextcloud Enterprise platform: files, office, email, chat and video calls, calendar and contacts, in the U.S., E.U., U.K. or Asia. Pick the region and team size to see what your team would pay.

Billing cycle
Region

First month for $1 on monthly billing with coupon code NEXTCLOUD, applied by the Order buttons.

Starter
The full suite for small teams leaving Google Workspace or Microsoft 365.
Compares with Google Workspace Business Starter and Microsoft 365 Business Basic
$5.90/user/mo
For 20 users: $118.00/mo
  • Files, Photos, Calendar and Contacts
  • Nextcloud Office: documents, spreadsheets and presentations
  • Talk: chat, audio and video calls, screen sharing
  • Standard Email
  • 100 GB storage per user
  • Desktop and mobile sync clients, public share links
  • Nextcloud Enterprise platform with managed updates and daily backups
  • Ticket support
Order Starter
Enterprise
Enterprise email and 24x7 support for organisations standardising on Nextcloud.
Compares with Google Workspace Business Plus and Microsoft 365 Business Premium
$19.90/user/mo
For 20 users: $398.00/mo
  • Files, Photos, Office, Talk, Calendar and Contacts
  • Notes, Tables, Deck and Tasks
  • Enterprise Email with delegation and other enterprise mail features
  • 1 TB storage per user
  • Desktop and mobile sync clients, public share links
  • Nextcloud Enterprise platform with managed updates and daily backups
  • 24x7 support
  • Upgrade path to a dedicated instance with your own domain and branding
Order Enterprise

USD per user per month before taxes; the billing-cycle discount applies to every plan. Order 1 to 50 users online. Need your own domain, a compliance boundary of your own or more than 50 users? See the dedicated instances below or contact us.

Frequently Asked Questions

Not under Enterprise Data Protection, which applies when users sign in with a work account: prompts and responses stay in the tenant and are not used to train Microsoft's foundation models. Consumer Copilot without a work sign-in does not carry those protections, so make sure staff use the right one.
Oversharing. Copilot honours existing permissions, so anything an employee technically has access to, including overshared SharePoint sites and 'anyone with the link' files, can surface in an answer. Audit sharing before enabling it.
Copilot features follow licensing and admin controls: assign Copilot licences selectively, use Purview DLP policies for prompts, sensitivity labels and restricted SharePoint search, and manage plugins from Integrated Apps. The exact controls change; check Microsoft Learn.
Only if you enable it. The open-source Nextcloud Assistant is included on the Ultimate tier for dedicated instances and runs against models you choose, local or remote; it is not enabled on Hub plans and nothing is trained on your data without your decision.
It is more controllable: no AI by default, models of your choosing when you want them, the data in a region you pick, and permissions that are simpler to audit. Microsoft 365 with Copilot can be run safely too; it takes the preparation listed on this page.

Same suite, your region, from $5.90 per user

Order a Nextcloud Hub plan and the first month is $1 with coupon code NEXTCLOUD. Move one team, run a month of real work, then decide.