During and after installation, the OS contacts Microsoft’s activation servers. Data sent includes: product key hash, hardware hash (a non-reversible representation of your PC’s components), and regional settings. Microsoft states this data is used “only for activation and validation.”

A Key Management Service (KMS) host inside your firewall ensures that individual installation features keys never leave your network. Your servers only send a KMS request to your internal host, not Microsoft. The privacy statement notes that KMS activations transmit no personally identifiable information except a generic count of activated clients.

: A unique number assigned to your PC to distinguish it from others.

Microsoft’s commitment to privacy includes giving users choices about which data-collecting features to enable during the "out-of-box experience" (OOBE). For instance, settings for , Location Services , and Error Reporting can be manually adjusted during setup.