UK company allegedly paid $4m in bribes to secure Microsoft data center construction contract

Stock image of a data center
(Image credit: Getty Images)

Three people were arrested by the UK Serious Fraud Office (SFO) after Blu-3, a construction management company, was suspected of bribing former members of the Mace Group during construction of a Microsoft data center in the Netherlands. According to the SFO, its team sent over 70 officers to four residential and one commercial property across London, Kent, Surrey, and Somerset to search for and seize evidence. It also coordinated with Monaco authorities to investigate a property related to one of the alleged conspirators.

“Paying bribes to do business undermines our financial markets, the reputation of British companies, and the rule of law, and will not be tolerated,” said SFO Director Nick Ephgrave QPM. He added, “Today’s action is a reminder that we will take rapid and robust action to tackle suspected bribery and corruption where it appears — at home and overseas.”

Microsoft currently operates a datacenter in the village of Middenmeer, located in Holland Kroon, the Netherlands, which was built in 2014. It also received permission to expand its presence there in 2023. The two companies involved, Blu-3 and Mace Group, were among the companies involved with its construction, although the UK government did not say if the £3 billion (~$4 million) bribery case is related to the original structure or the ongoing expansion.

It’s also unclear if the bribery case directly involved Microsoft or local Dutch authorities. The municipal government of Holland Kroon said that it has taken note of SFO’s investigation. “We are following this investigation with interest and, where necessary, give our full cooperation,” the Holland Kroon spokesperson told Tweakers [machine translated]. “As a municipality, we have a role in the zoning plan and the granting of permits. But we have no role in the construction or tendering of the construction of data center. That lies in the basis between client and contractor.”

This isn’t the first time that Microsoft’s Netherlands data center has been involved in controversy. When the software giant started its construction, many Dutch farmers complained and protested that it jumped the queue for getting a permit, as it was able to start construction almost immediately. This drew the ire of many locals, who were having trouble getting the same from the local government. In its defense, the company said that it was able to secure a “tolerance decision,” which allowed it to build while waiting for a permit — but it was doing so at its own risk, as having started the project does not mean that it will be granted one.

Follow Tom's Hardware on Google News to get our up-to-date news, analysis, and reviews in your feeds. Make sure to click the Follow button.

Jowi Morales
Contributing Writer

Jowi Morales is a tech enthusiast with years of experience working in the industry. He’s been writing with several tech publications since 2021, where he’s been interested in tech hardware and consumer electronics.

  • TheSecondPower
    So much for that anti-bribery training everyone who does business with the UK has to take.
    Reply
  • Notton
    Why is construction mired with bribery, mafia, and dishonesty?
    It's not just UK, this happens all around the world to a varying degree.
    Reply
  • SomeoneElse23
    TheSecondPower said:
    So much for that anti-bribery training everyone who does business with the UK has to take.
    It's a classic case of "do as I say, not as I do".
    Reply