AZURE-CONSISTENT AI & DATA IN YOUR OWN DATACENTRE

AI & Data on Azure Local

Run the AI OS on Azure Local — Azure-consistent infrastructure operating inside your own datacentre, so your data, models, and prompts never leave your perimeter while you keep cloud-grade operations and confidential computing. We can also run Microsoft Foundry Local's on-device inference on your Azure Local hardware, in connected or fully disconnected mode.

In Your Perimeter

Azure-consistent infrastructure runs in your own datacentre or edge site — data never leaves your control.

Confidential On-Prem

Confidential VMs and GPUs on AMD SEV-SNP and Intel TDX keep data and models encrypted in use, on your own hardware.

Foundry Local

Microsoft Foundry Local's on-device inference runs on your Azure Local hardware — in connected or fully disconnected mode.

Definition

AI & data on Azure Local means running AI and analytics workloads on Microsoft's Azure Local (formerly Azure Stack HCI) — Azure-consistent infrastructure deployed in your own datacentre or edge location — so data and models stay physically within your perimeter and under your control, with confidential computing and remote attestation available on your own hardware. The AI OS can also serve models through Microsoft Foundry Local's on-device inference running on your Azure Local hardware, in connected or fully disconnected mode.

Hyperscale cloud is not always an option: data residency rules, sovereignty mandates, latency, or disconnected sites can require AI to run where the data lives. Azure Local brings Azure-consistent infrastructure into your own datacentre. Running the AI OS on Azure Local gives you the operational model of the cloud while data, models, and prompts stay physically inside your perimeter.

Where it fits

AI & Data on Azure Local in the Scrydon platform

One integrated, sovereign architecture. Here is where AI & Data on Azure Local sits — highlighted against the full stack it works with.

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Welcome

The AI OS for Humans & AI Agents to enable your processes

In [1]:
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Conversational Intelligence: Natural language interface that seamlessly connects your ontology, multi-modal data, and sovereign workflows.
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Link your processes, knowledge & data to ontologies.

Unified storage, structured compute, and secure multi-modal data processing.

TablesKnowledge

Autonomous operatives with specialised skills executing tasks across systems.

AI Workflows

Sovereign pipelines, federated APIs, and seamless connector meshes.

Secure domain federation, trusted data sharing, and cross-boundary intelligence.

Deploy from Air-gapped to Hyperscale
A closer look

AI & Data on Azure Local in depth

Sovereign Foundations

Observability
Full-stack monitoring & alerting
Zero-Trust
Continuous verification
Automation
GitOps & policy-as-code
Key Management
HSM-backed secrets
Kubernetes
Sovereign cluster orchestration
Identity
Federated IAM (SAML/OIDC)

The AI OS only works if it can be trusted. Every layer of the platform rests on a zero-trust infrastructure and identity foundation that operates consistently from fully air-gapped on-premises deployments through to hyperscale cloud environments. Sovereignty is not a feature added on top — it is the condition under which everything else operates.

  • Zero-trust architecture: Continuous verification for every request, every user, and every workload — no implicit trust, even inside the perimeter.
  • Federated identity: Seamless integration with your existing IdP (SAML, OAuth 2.0, OIDC) for unified, policy-enforced access control.
  • Air-gapped deployment: Run the complete platform with no external network dependencies — ideal for defence, critical national infrastructure, and classified workloads.
  • Confidential computing: Hardware-level encryption of data in use via AMD SEV-SNP and Intel SGX, protecting workloads even from infrastructure administrators.

Deployment Options: From Air-gapped to Cloud

HOW IT WORKS

Azure-consistent AI inside your own perimeter

The AI OS deploys onto Azure Local so the entire AI workload — data, model weights, and prompts — is processed on infrastructure that physically lives in your datacentre or edge location. You keep Azure-consistent operations and tooling without sending sensitive data to a public region.

  • Azure-consistent stackRun Azure-aligned infrastructure and services on your own hardware, in your own datacentre or at the edge.

  • Confidential compute on-premHardware-isolated confidential VMs and GPUs on AMD SEV-SNP and Intel TDX keep memory encrypted during execution.

  • Remote attestationVerify the TEE before secrets, keys, or models are provisioned — the same zero-trust gate used in the cloud.

  • Sovereign key managementYou hold the keys and the hardware; Microsoft and administrators cannot read data in use.

WHY AZURE LOCAL

Cloud-grade operations without the data leaving your walls

Regulated and sovereignty-conscious organisations often want the operational model of Azure but cannot place sensitive data in a public region. Azure Local resolves the tension: you get Azure-consistent infrastructure, tooling, and confidential computing while data and models stay physically inside your perimeter — the same zero-trust posture the AI OS applies everywhere, from air-gapped on-premises through to hyperscale cloud.

FOUNDRY LOCAL

Microsoft Foundry Local on your Azure Local hardware — connected or fully disconnected

The AI OS can serve models through Microsoft Foundry Local running on your Azure Local hardware, inside your perimeter. Foundry Local brings on-device model inference to your datacentre and edge sites, and the AI OS orchestrates it the same way it orchestrates any other model — so you can run it connected to Azure for management and updates, or fully disconnected with no outbound network at all.

  • On-device inferenceMicrosoft Foundry Local serves models locally on your Azure Local hardware — no inference call leaves your perimeter.

  • Connected modeOperate connected to Azure for centralised management, model updates, and Azure-consistent tooling.

  • Fully disconnected modeRun Foundry Local with no outbound network at all — suitable for air-gapped and sovereignty-constrained sites.

  • Orchestrated by the AI OSFoundry Local models are governed and orchestrated by the AI OS alongside your data, agents, and ontology.

THE DIFFERENCE

Microsoft Fabric, Databricks, and Foundry do not run in your datacentre on confidential compute. Our solution does.

The mainstream Azure analytics and AI platforms — Microsoft Fabric, Databricks, and Azure AI Foundry — are cloud SaaS that process your data in public regions on standard, non-confidential compute, exposing it in memory to the cloud operator while in use. The AI OS runs the same class of analytics and AI workloads on Azure Local inside your own datacentre, on confidential VMs and GPUs, so your data, models, and prompts stay within your perimeter and encrypted in use.

  • Fabric, Databricks, FoundryCloud SaaS on standard compute — your data leaves your perimeter and is decrypted in memory in a public region while being processed.

  • The AI OS on Azure LocalRuns in your own datacentre on confidential VMs and GPUs — data and models stay in your perimeter and encrypted in use, protected from the cloud operator by hardware isolation.

FAQ

Frequently asked questions

How can I run AI and data on Azure Local?+
Deploy the AI OS onto Azure Local (formerly Azure Stack HCI): your AI and data workloads run on Azure-consistent infrastructure inside your own datacentre or edge site, so data, models, and prompts stay physically within your perimeter. You get a cloud-grade operating model with confidential VMs and GPUs (AMD SEV-SNP, Intel TDX) keeping data encrypted in use, and you can connect to Microsoft Foundry Local for on-device model inference in connected or fully disconnected mode. It is the same AI OS, ontology, agents, and analytics you would run in the cloud — just resident on your own hardware.
What is Azure Local?+
Azure Local (formerly Azure Stack HCI) is Microsoft's Azure-consistent infrastructure that runs in your own datacentre or edge location rather than a public Azure region. It lets you operate Azure-aligned services and tooling on your own hardware, so data can stay physically within your perimeter.
Can you run Microsoft Foundry Local on Azure Local?+
Yes. The AI OS can serve models through Microsoft Foundry Local running on your Azure Local hardware, inside your perimeter — in connected mode (linked to Azure for management and updates) or fully disconnected mode (no outbound network at all, suitable for air-gapped sites). The AI OS orchestrates Foundry Local models alongside your data, agents, and ontology. See Microsoft's Foundry Local documentation for more detail.
Do Microsoft Fabric, Databricks, and Azure AI Foundry run in my datacentre on confidential compute?+
No. Microsoft Fabric, Databricks, and Azure AI Foundry are cloud SaaS that process data in public Azure regions on standard, non-confidential compute, so your data leaves your perimeter and is decrypted in memory while in use. The AI OS is different: it runs the same class of analytics and AI workloads on Azure Local inside your own datacentre, on confidential VMs and GPUs, keeping data, models, and prompts in your perimeter and encrypted in use.
Can AI workloads use confidential compute on Azure Local?+
Yes. Azure Local supports confidential VMs on AMD SEV-SNP and Intel TDX, and confidential GPUs, so AI inference and training run with data and model weights protected in use — on your own hardware, inside your own datacentre.
Is data protected from Microsoft and administrators on Azure Local?+
Yes. With confidential computing on Azure Local, memory is encrypted by the CPU/GPU hardware and keys are controlled by you. Because the hardware sits in your datacentre and the data stays in your perimeter, neither Microsoft nor infrastructure administrators can read the data or models while they are being processed.
How is Azure Local different from running in a public Azure region?+
Azure Local gives you Azure-consistent operations and tooling, but the infrastructure physically lives in your own datacentre or edge site rather than a Microsoft region. That keeps data resident and within your perimeter — important for sovereignty, data-residency rules, latency, and disconnected or edge locations — while you keep a cloud-grade operating model.
Does the AI OS run the same way on Azure Local as in the cloud?+
Yes. The AI OS, its ontology, agents, and insights run consistently from fully air-gapped on-premises deployments, through Azure Local in your own datacentre, to hyperscale cloud. Sovereignty never depends on where you deploy — the same zero-trust and confidential-computing controls apply everywhere.

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