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Microsoft launches new Azure Local capabilities to run AI without cloud connectivity

Microsoft launches new Azure Local capabilities to run AI without cloud connectivity

Microsoft is bringing a "full stack" experience to organisations and industries with air-gapped environments to run infrastructure tools and advanced AI models locally.

Business Today Desk
Business Today Desk
  • Noida,
  • Updated Feb 24, 2026 6:26 PM IST
Microsoft launches new Azure Local capabilities to run AI without cloud connectivity Microsoft

Microsoft has announced new upgrades to its Sovereign Cloud platform, which is designed to function in "dark" environments. These updates will ensure a mission-critical infrastructure to run large AI models, office tools, and cloud systems without the need for an internet connection.

The update will benefit governments, defence agencies, and industries with strict security regulations that require systems to function in secure environments. With expansion, Microsoft is offering a "full stack" experience in terms of providing basic governance and advanced AI inferencing. 

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Microsoft stated in a press note that “Customers can now help maintain uninterrupted operations, keep mission-critical workloads protected and apply consistent governance and policy enforcement, while keeping data, identities and operations within their sovereign boundaries.”

3 upgrades to Microsoft’s localised cloud stack

Azure Local disconnected operations (now available): Organisations will now be able manage mission-critical infrastructure by leveraging Azure’s standard governance and policy controls without any cloud connectivity. Microsoft stated that it has been optimised for sovereign, classified, or isolated environments.

Microsoft 365 Local disconnected: Within a customer’s sovereign boundary on Azure Local infrastructure, organisations can securely use core productivity services, including Exchange Server, SharePoint Server, and Skype for Business Server. This will allow teams to remain productive even without cloud access.

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Foundry Local with large AI model support: Microsoft is bringing Large AI model support to disconnected environments. This will allow organisations to run large multimodal AI models locally using partner hardware such as that from NVIDIA.

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Published on: Feb 24, 2026 6:26 PM IST
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