Why Financial Services Organizations Should Consider Expanding to Other Azure Regions for New Workloads

As a Cloud Architect, I work closely with financial services organizations to help them unlock the full potential of Azure innovations. One of the most impactful strategies I recommend is adopting a multi-region approach for Azure deployments. While many customers have historically concentrated workloads in a single region—often for simplicity or legacy reasons – the landscape is rapidly changing. Here’s why expanding to other Azure regions for new workloads is not just a technical consideration. It is a strategic imperative.

Beyond Resiliency: Multi-Region Growth as a Business Enabler

Historically, multi-region strategies were primarily implemented as measures for business continuity and disaster recovery (BCDR). Today, their significance extends well beyond resiliency, offering substantial enhancements to organizational capabilities within the financial services sector.

For instance, leveraging access to over 60 Azure regions worldwide, organizations can refine resource allocation and improve elasticity. A future-proof organization should establish Azure Landing Zones in regions where their users may not yet be operating. If these landing zones and associated services are readily available, teams can deploy workloads efficiently. They can overcome capacity constraints and adapt quickly to changing business needs whenever they may arise.

Furthermore, capitalizing on regional diversity provides teams with access to distinctive benefits available in specific regions. These may include advanced AI capabilities – stemming from both innovative software solutions in our Azure platforms, as well as state-of-the-art hardware investments that we are making with our partners.

Regulatory Compliance and Data Residency

Financial services organizations are under increasing pressure to comply with strict regulatory mandates regarding data residency, privacy, and security.

Azure’s expansive global reach, including 12 dedicated EU data residency regions with GDPR capabilities enabled, empower customers to confidently meet local governance and compliance obligations. This ensures the safeguarding of sensitive financial data.

I’ve seen the benefits of designing architectures that put data sovereignty first and staying proactive about data policy changes—like the recent updates in the Netherlands and West Europe. This approach has helped organizations not only stay aligned with regulations but also enhance their reputation for trust and security as the digital landscape evolves.

Cost Optimization and Sustainability

Expanding into alternative Azure regions can really make a difference when it comes to cost savings. Many of the recommended regions actually offer lower total cost of ownership across a wide variety of Azure services. This is especially true when compared to older, legacy regions. It can have a direct, positive impact on the bottom line.

There’s also a major sustainability angle to consider. For instance, regions like Central US or Sweden Central benefit from Microsoft’s sustainability investments. These regions provide carbon-neutral operations and give organizations the opportunity to choose some of the most environmentally friendly options available.

Microsoft is strongly committed in our carbon-neutral goals. By being strategic about where financial organizations deploy, they are not just saving money. They are also aligning with critical environmental goals of their own.

Improved Performance and Resiliency

A multi-region strategy offers many benefits in terms of performance and resiliency. First and foremost, when deploying workloads closer to the end users or data sources, users and IT teams will see a noticeable reduction in latency. This means faster performance and a much-improved customer experience, which is crucial in today’s competitive landscape.

Another important benefit is enhanced resiliency. When distributing solutions across multiple regions, organizations can better withstand geographic incidents—such as outages or natural disasters. This approach helps safeguard operations and supports ongoing business continuity.

Last but not least, a multi-region approach empowers organizations to support AI initiatives. For instance, Data and AI teams can centralize data processing and training in the regions that make the most sense for their needs, and they can leverage Azure’s robust network to inference their models in another environment and connect to other platforms in the Microsoft ecosystem while maintaining the same governance policies. This not only streamlines data processing or model inferences, but through federated learning it provides an end-to-end platform of choice, where different departments are taking advantage of each other’s innovations as an unified operation unit.

Recommended Azure regions for US-based Financial Institutions

For US-based financial services organizations, Central US stands out as a strategic hub for cloud expansion based on the following advantages.

• Low Latency, Nationwide Reach: Located in Iowa, Central US offers optimal connectivity across North America, minimizing network delays for customers and partners coast-to-coast.
• Capacity and Reliability: Central US is recommended for zonal-dependent workloads, with robust infrastructure and availability zones designed for mission-critical financial applications.
• Cost: Central US provides increased discounts for Azure reservations and savings plans—delivering 5–15% lower costs on compute, storage, and databases compared to other regions. This price parity with East US means you can scale more efficiently while reducing total cost of ownership.
• Regulatory Alignment: Central US supports stringent compliance needs, including PCI, SOC, and ISO certifications, making it a safe choice for sensitive financial workloads.
• Strategic Positioning: As demand surges in East US and other regions, Central US provides a healthy, unconstrained alternative for new deployments and expansion, ensuring your growth isn’t limited by capacity restrictions.

If your organization operates in the European Union, the conversation around Azure region selection has never been more important. Recent policy updates and operational changes, especially in West Europe and the Netherlands, mean sticking with legacy region choices may no longer serve your long-term interests. Reach out to your Microsoft Account Team for recommendations on specific EU regions.

Incentives and Support for Azure Region Expansion

We are committed to supporting customer success in implementing multi-region strategies. Our goal is to facilitate a seamless experience for our customers, provide ample capacity, and push the boundaries of innovation. To this end, please contact your Azure Sales Specialist, to learn more regarding resources  that might be available.

Final Thoughts

Whether based in the US or another geography, expanding to Microsoft’s recommended Azure regions is more than a technical upgrade, it’s a strategic decision that empowers financial services organizations to take advantage of new innovations, optimize costs, meet regulatory requirements, enhance resiliency, and drive sustainable growth.

Connect with your Microsoft Account Team, explore what’s available, and start planning your multi-region journey today.