Users across more than 70 countries lost access to Microsoft 365 services on Thursday when servers failed automated health checks, triggering a global outage.
The disruption left workers unable to open Exchange Online mailboxes, join Teams meetings, or consult the Copilot AI assistant.
Microsoft attributed the initial collapse to elevated load on infrastructure during a capacity upgrade. Servers reported themselves as unwell during automated checks, shutting down and dumping traffic onto neighboring nodes in a vicious loop.
We are deeply sorry for the disruption this incident has caused our customers and partners. We know the trust they place in our services and take that responsibility extremely seriously. We are seeing broad recovery and stability across our services. This was a technical issue…
“The cloud is really just someone else’s computer, someone else’s server,” said tech expert Paul Stenhouse on the NZ Herald’s Saturday Morning with Jack Tame show. Stenhouse explained that pulling all traffic off, fixing the servers, and slowly letting traffic back on proved to be a painfully slow process.
Global Public Services Stalled
Health NZ reported that its Digital Services team reverted to manual systems like phones, fax machines, and physical printing to keep hospitals running. Immigration NZ was forced to pause visa application processing through its Immigration Online platform.
We’re seeing encouraging recovery progress, with service availability and email delivery performance improving across a growing portion of affected infrastructure. We know our customers rely on our services to get important work done every day, and regret the impact these outages…
In the United Kingdom, NHS hospital staff resorted to paper records, while court systems sent juries home early, as reported by The Guardian. Prime international hubs across Japan, Singapore, and Australia likewise reported hours-long disruptions to core administrative functions.
Students preparing for high-stakes examinations also faced roadblocks. “This also means that customers cannot apply at the moment through our enhanced Immigration Online platform. But there is no impact on customers being able to request a New Zealand Electronic Travel Authority (NZeTA) to travel to New Zealand and our service continues as usual,” Immigration NZ said, as parents said that children could not retrieve class notes, sample questions, or study answers stored across cloud repositories.

| Region / Sector | Reported Impact | Mitigation Strategy |
|---|---|---|
| New Zealand Healthcare | Email and internal networks disabled | Reverted to phone, fax, and paper records |
| New Zealand Immigration | Visa processing paused | Halted enhanced Immigration Online platform |
| UK Public Services | Court systems and hospitals disrupted | Sent juries home, used physical records |
| Global Aviation | Email support services affected | Deployed alternative customer contact channels |
Microsoft Restores Service Amid Questions of Systemic Fragility
By Saturday morning, Microsoft announced that it had completed efforts to address the underlying issue and restored service to remaining customers. The company noted sustained improvements across Europe, North America, and the Asia-Pacific region.
Yet the incident prompted sharp questions regarding digital sovereignty and systemic fragility.
We're investigating reports of users experiencing issues accessing Exchange Online mailboxes through multiple connection methods in the Americas. More details can be found in the Microsoft 365 admin center under EX1550543.
“This problem serves to emphasise the dependence we have built on one company’s digital infrastructure, and may lead us to question whether we need more resilience in our IT ecosystem,” said Jeremy Singer, a professor at the University of Glasgow’s School of Computing Science.
Microsoft maintained throughout the incident that it found no indication of malicious activity or cyberattacks causing the failure. Questions regarding potential compensation for enterprise customers holding strict service level agreements remain entirely unresolved, with an Australia-New Zealand spokesperson declining to comment on the matter to the NZ Herald.
Earlier coverage: Microsoft 365 Outage Hits 74 Countries and Disrupts Services