What Is Microsoft 365 GCC High And Do You Really Need It?
Emily Bonnie
Senior Content Marketing Manager
Rob Gutierrez
Senior Cybersecurity and Compliance Manager, CISA, CCSK, CMMC RP
If you’re a defense contractor (or planning to become one) you’ve probably come across Microsoft 365 GCC High. And if you’ve started digging into CMMC 2.0 or DFARS compliance, you might be wondering: What exactly is GCC High? Do I need it? Is it worth the cost and complexity?
In this article, we’ll unpack what Microsoft GCC High is, how it differs from other Microsoft cloud environments, who it’s for, and what to consider before making the switch.
What is Microsoft GCC High and who uses it?
Microsoft 365 GCC High (short for Government Community Cloud High) is a specialized cloud computing environment designed to meet the strict compliance requirements of US federal agencies and their contractors, especially those in the Defense Industrial Base (DIB).
Organizations that typically use GCC High include prime contractors and subcontractors working with the Department of Defense, aerospace and defense manufacturers, organizations that handle export-controlled data under ITAR or EAR, and companies preparing for or subject to CMMC Level 2 or 3 certification. It’s also common among federal systems integrators and managed service providers that support government clients.
Unlike Microsoft’s Commercial and GCC offerings, GCC High is hosted in Azure Government data centers located exclusively in the United States. All data is stored on US soil, and access is restricted to screened US citizens. This makes it suitable for handling Controlled Unclassified Information (CUI), Security Protection Data (SPD), International Traffic in Arms Regulations (ITAR) data, Export Administration Regulations (EAR), Covered Defense Information (CDI), and other sensitive government data.
GCC High is FedRAMP High authorized and supports compliance with frameworks like DFARS 252.204-7012 (C-G paragraphs), NIST 800-171, and CMMC 2.0 Level 2 and Level 3. If your organization is handling sensitive Department of Defense (DoD) data, GCC High may not just be a good fit — it may be your only compliant option if you’re a Microsoft shop.
Recommended reading
What You Need to Know About Controlled Unclassified Information (CUI): Categories, Controls, and Compliance
What is available in GCC High?
GCC High includes many of the same core Microsoft 365 services found in Commercial tenants, such as Entra ID, Microsoft Intune, Exchange Online, SharePoint Online, Microsoft Teams, OneDrive for Business, Microsoft Defender, Microsoft Purview (formerly Information Protection), and Enterprise Mobility + Security (EMS).
However, some features available in Microsoft 365 Commercial are limited or not available in GCC High. For example, Microsoft Teams PSTN calling plans are not natively supported in GCC High, requiring third-party telephony integrations instead. Certain third-party app integrations may be restricted, and new Microsoft features tend to roll out more slowly due to the required security reviews. External sharing is also limited to other GCC High environments and DoD tenants only.
These limitations are intentional, designed to reduce data security risks and preserve compliance with strict government regulations. Still, they can affect your team’s productivity, especially if you collaborate often with organizations outside the defense sector or rely on MS365 plugins that aren’t GCC High-compatible.
B2B capabilities of GCC High
GCC High tenants can securely share files and collaborate with other GCC High and DoD tenants, thanks to Microsoft’s support for B2B federation within sovereign cloud environments.
However, data sharing and real-time collaboration with Commercial or GCC tenants is not supported. If your team frequently collaborates with subcontractors, vendors, or clients outside of GCC High, this can create some friction.
To remain compliant, you may need to isolate your sensitive data workflows or operate multiple Microsoft tenants: one for federal government-regulated data and another for general business operations.
Where is GCC high located?
GCC High is hosted within eight dedicated Azure Government data centers located across the continental United States. Microsoft guarantees that all data remains within US borders, all access is restricted to US persons who have passed background screening, and all services are operated within Microsoft’s US Sovereign Cloud.
This physical and logical separation is essential for complying with ITAR, EAR, and other high-assurance federal security mandates.
Microsoft 365 GCC vs Microsoft GCC High
Microsoft 365 Commercial is Microsoft’s standard cloud offering for businesses. It supports baseline security capabilities like NIST 800-171, but it’s not suitable for DFARS 7012 compliance or CMMC Level 2 or Level 3 certification. Commercial tenants are hosted in global Azure data centers and supported by personnel who may be located outside the United States.
Microsoft 365 GCC is built for US government agencies and regulated entities. It offers improved data residency controls by keeping data within the US, but it still runs on Azure Commercial infrastructure. While GCC can support DFARS 7012 and CMMC Level 1, some services may not meet the strict access controls required for export-controlled data. Support staff may include non-US persons.
Microsoft 365 GCC High is designed specifically for DoD contractors and DIB organizations. It provides a higher level of assurance by running on Azure Government infrastructure, storing data exclusively in US data centers, and limiting access to screened US citizens only. It is the only Microsoft 365 environment available to contractors that meets all of DFARS 7012 C-G, ITAR, and CMMC Level 2 and 3 requirements.
Microsoft 365 DoD is a restricted environment for use by Department of Defense agencies only. It meets DoD SRG Levels 5 and 6 and is not available to contractors.
| Microsoft 365 Environment | Best for | Compliance Support | Hosted On | Access Controls |
| Commercial | General businesses | NIST 800-171 (basic) | Azure Commercial | Global support team |
|---|---|---|---|---|
| GCC | Federal, state, and local governments | DFARS 7012 (partial), CMMC L1-L2 | Azure Commercial (US only) | US data centers, but support may include non-US persons |
| GCC High | DoD contractors, DIB suppliers | DFARS 7012 C-G, ITAR, CMMC L2-L3 | Azure Government | Data and support restricted to US persons |
| DoD | Department of Defense only | DoD SRG Levels 5-6 | Azure Government (DoD-only) | DoD-restricted |
Do you need GCC High for CMMC 2.0?
Technically, no. GCC High is not a formal requirement for CMMC certification at any level.
But in practice, it’s often the safest and most straightforward option for organizations targeting Level 2 or Level 3 compliance. If you handle export-controlled data like CUI, ITAR, or EAR, you’ll need GCC High to meet the necessary access and residency controls. If you’re subject to DFARS 7012, particularly paragraphs (c) through (g), GCC High is currently the only Microsoft environment that offers built-in support for those requirements.
Using GCC High also simplifies collaboration with DoD organizations or prime contractors who are already in the GCC High environment. And by restricting access to US persons and keeping data in US facilities, GCC High reduces the risk of non-compliance due to foreign access or misconfigured commercial features.
In contrast, GCC can technically support CMMC Level 2 under some configurations, but it comes with more limitations and a greater burden of proving compliance, particularly around enclave segregation and feature control.
Recommended reading
CMMC Level 2 Compliance: How to Meet Requirements + Checklist
GCC High applications for DoD contractors
GCC High supports many of the compliance-enabling tools you’ll need.
- Microsoft Entra ID: Formerly Azure Active Directory, Entra ID provides identity and access management for users, devices, and applications in GCC High. It supports features like Conditional Access, multifactor authentication (MFA), and role-based access control (RBAC), all critical for enforcing zero trust principles and meeting CMMC and NIST identity management requirements.
- Microsoft Intune: Intune enables mobile device management (MDM) and mobile application management (MAM) for government cloud environments. It allows you to securely manage endpoints, enforce configuration baselines, and apply security policies across all devices accessing sensitive data, supporting controls in NIST 800-171 and CMMC related to system configuration and media protection.
- Microsoft Sentinel: Sentinel is a cloud-native security information and event management (SIEM) platform that collects, analyzes, and correlates logs from across your environment—including GCC High workloads. It enables advanced threat detection, incident response, and security analytics aligned with continuous monitoring and audit logging requirements in frameworks like CMMC, DFARS, and FedRAMP.
- Microsoft Purview Information Protection: Allows you to discover, classify, and protect CUI through sensitivity labels and data loss prevention policies. It helps ensure that sensitive data stays within your controlled environment.
- Microsoft Defender for US Government: Provides endpoint and email protection, with features like threat analytics, attack surface reduction, and real-time reporting to support NIST 800-171’s system integrity requirements.
- SharePoint and OneDrive for US Government: Provide secure content management, storage, and collaboration tools, configured to meet FedRAMP High and CMMC data handling standards.
- Microsoft Teams: Enables secure communication and file sharing, though some features available in Commercial tenants like PSTN calling require workarounds in GCC High.
Planner and Forms are also available, though Forms does not support external sharing in GCC High, and both tools may offer reduced functionality compared to their Commercial counterparts.
Is GCC High ITAR compliant?
Yes. GCC High was built with ITAR compliance in mind.
It meets all security requirements for protecting export-controlled data under ITAR and EAR, including exclusive US data residency, restricted US personnel access, and physical and logical separation from commercial Microsoft tenants.
If your business involves technical data or defense articles regulated under ITAR, GCC High is likely your only viable Microsoft 365 environment.
How much does GCC High cost?
Pricing varies by license type (F3, E3, E5, etc.), but you can expect to pay 50–70% more for Microsoft 365 GCC High compared to equivalent Commercial or GCC licenses.
This premium covers the cost of hosting data in dedicated US government data centers, employing screened US support personnel, and maintaining the additional security controls required to meet ITAR, DFARS, and CMMC compliance. GCC High tenants often also license other cybersecurity and compliance tools like Microsoft Defender, Purview, and Enterprise Mobility + Security (EMS), which adds to the overall cost.
How to purchase GCC High licenses
GCC High must be purchased through Microsoft or an AOS-G (Authorized Government Partner) after passing an eligibility validation process. To purchase GCC High licenses, your organization must meet eligibility requirements as a government agency or regulated entity (such as handling CUI or export-controlled data).
You’ll need to submit an eligibility validation request to Microsoft. If you need fewer than 500 licenses, you can work with an AOS-G partner to complete your purchase. For larger volumes, you’ll need to engage a Licensing Solution Provider (LSP).
It’s important to note that GCC High licenses must be purchased on an annual basis. Microsoft does not offer monthly billing or allow mid-term license reductions.
Building a strong infrastructure to protect CUI and other government data
Microsoft 365 GCC High is one of the most secure and compliant environments available to defense contractors and organizations in the DIB, but managing compliance across a federal tech stack still requires significant effort. From DFARS to CMMC, the path to certification involves continuous monitoring, rigorous documentation, and a strong internal security posture.
Secureframe’s compliance automation platform integrates directly with Microsoft GCC High, Azure Government, Entra ID, and AWS GovCloud to simplify compliance with frameworks like CMMC 2.0, DFARS 7012, NIST 800-171, FedRAMP, and more. We automate evidence collection, continuously monitor control performance, and give you full visibility into your compliance posture. With Secureframe, you get more than just software — you get a partner that helps you operationalize cybersecurity, reduce assessment preparation time by up to 70%, and stay aligned with evolving federal requirements.
Ready to see how Secureframe and GCC High work better together? Schedule a demo to learn how we can help you move faster and stay secure.
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FAQs
What is Microsoft GCC High?
Microsoft 365 GCC High is a secure cloud environment designed for US federal agencies and defense contractors. It provides advanced compliance and data protection capabilities for handling Controlled Unclassified Information (CUI), ITAR data, and other sensitive government information, and is hosted in US-based Azure Government data centers.
Who needs Microsoft GCC?
Microsoft GCC is typically used by US state, local, and federal government agencies, as well as contractors that handle government data but don’t require the stricter access and residency controls of GCC High. It supports compliance with standards like FedRAMP Moderate and CMMC Level 1.
What does GCC stand for in Microsoft?
GCC stands for Government Community Cloud. It refers to Microsoft’s secure cloud offerings for US public sector customers, including GCC, GCC High, and DoD environments.
Is Microsoft GCC High FedRAMP Authorized?
Yes. Microsoft 365 GCC High is FedRAMP High authorized. It meets the stringent security requirements for protecting the government’s most sensitive unclassified data and is hosted within Azure Government infrastructure.
Is GCC High required for CMMC?
No, GCC High is not a formal requirement for CMMC certification. However, it is often the most practical choice for organizations pursuing CMMC Level 2 or 3, especially if they handle export-controlled data or are subject to DFARS 7012 C-G.
Do I need GCC High for CUI?
It depends on the type of CUI you handle. If your CUI is subject to ITAR, EAR, or DFARS 7012 C-G requirements, GCC High is the only Microsoft environment that fully meets those standards. For less sensitive CUI, GCC or Commercial may suffice if properly configured.