while I understand the meaning here, modern Excel does handover data to Microsoft (via Copilot)...
Government and 365 is weird.
Non-military entities use “Government Community Cloud”, which is an environment where data is stored in segmented areas of Microsoft data centers, but everything else is on commercial infrastructure.
You absolutely can host keys as a customer.
The Microsoft approach to all of this stuff is insane.
If even sovereign states with clear laws forbidding such behavior can't keep those companies in check, no enterprise/b2b can.