Re: Segregation
The data centers are in Frankfurt and Magdeburg, as stated in the article.
Additionally, whilst the servers front-facing services are on the Internet, there is no remote administration access to the server farm, it must all be done locally and only vetted T-Systems employees have access. If Microsoft want access, they have to turn up with authorization and will be escorted to the machines.
Allegedly, they will not be able to touch the machines directly, so no admin access and no copying data off. That also means, that if MS are given a US court order for access to the data, they will have to refuse, because they will not get access to the servers without a valid German search warrant, as T-Systems falls under German jurisdiction and is solely responsible for the running of the services.