While GitHub has maintained a large degree of autonomy since being acquired by Microsoft for $7.5 billion in 2018, it is now preparing for a major transition to its own Azure cloud servers, described as “existentially critical.” This move signals that the developer platform will accelerate its integration with Microsoft following the resignation of former CEO Thomas Dohmke less than two months ago.

According to sources familiar with the matter, GitHub is expected to fully migrate to Azure within the next 12 months. This transition is part of a broader integration process that began with the platform’s move to Microsoft’s developer division in 2021, bringing it closer to Microsoft’s CoreAI team.

Why is GitHub moving to Azure?

Vladimir Fedorov, GitHub’s chief technology officer (CTO), officially announced the Azure migration this week in an internal announcement. Fedorov stated that the primary reason for the move was that GitHub was struggling with its current data center capacity. Currently, the platform is hosted on the company’s centralized hardware in Virginia. In a memo to GitHub employees, Fedorov stated, “Our data server capacity is constrained, and our opportunities to bring more capacity online in the Northern Virginia region are limited.”

Fedorov emphasized the necessity of the transition, adding, “We must do this. GitHub’s ability to scale to meet the demands of AI and Copilot is of existential importance, and Azure is the way forward for us.” This statement highlights the critical role of cloud computing infrastructure, particularly in meeting the growing demand for AI tools like GitHub Copilot.

Besides this significant technical change, GitHub’s enterprise integration with Microsoft is also accelerating. The company has been increasing this integration in recent weeks. This comes just ahead of Microsoft’s plans to implement a more comprehensive return-to-office mandate that will also impact GitHub employees next year.

Microsoft’s senior management team is reportedly strongly supporting this strategic move. This shows that the merger, which was met with concern by the developer community at the time of the 2018 acquisition, has deepened at the technical and corporate level over the years.