President says customers are asking company to build data centres elsewhere as a result of the government’s encryption bill

Companies and governments are “no longer comfortable” about storing their data in Australia as a result of the encryption legislation, Microsoft has warned.

On Wednesday the company’s president and chief legal officer, Brad Smith, said customers were asking it to build data centres elsewhere as a result of the changes, and the industry needed greater protection against the creation of “systemic weaknesses” in their products.

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