Microsoft launched its first UK cloud-based services from data centers based in Britain. From facilities in London, Durham and Cardiff, the UK-based cloud will host Office 365 and Azure. Microsoft plans to add its Dynamics CRM Online suite of cloud sales and marketing applications in the first half of 2017.

Previously, Microsoft customers using cloud software relied on European data centers based in Dublin, Amsterdam or other locations. Microsoft operates more than 100 data centers globally.

The Ministry of Defence and the NHS have signed on with the new cloud services. Public sector organizations that handle sensitive data have traditionally been tepid about the cloud. The Government cited the cost savings and security for the switch to Microsoft’s new UK-based cloud.

Amazon is set to open its own rival UK data centres soon.