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How disconnected clouds improve AI data governance

Simon Osuji by Simon Osuji
February 24, 2026
in Artificial Intelligence
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How disconnected clouds improve AI data governance
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Disconnected clouds aim to improve AI data governance as businesses rethink their infrastructure under tighter regulatory expectations.

Ensuring operational continuity in isolated environments has become increasingly vital for businesses. Facilities lacking continuous internet access face unique constraints where external dependencies become unacceptable.

Microsoft recently expanded its capabilities to allow regulated industries and public sectors to participate independently in the digital economy. Trust in these systems stems from confidence that data remains protected, controls are enforceable, and operations proceed regardless of external conditions.

The company now offers full stack options across connected, intermittently connected, and fully disconnected modes. This architecture unifies Azure Local, Microsoft 365 Local, and Foundry Local into a single sovereign private cloud.

Bringing these elements together provides a localised experience resilient to any connectivity condition. By standardising governance across all deployments, it helps enterprises to prevent fragmented architectures.

Azure Local disconnected operations enable organisations to run vital infrastructure using familiar Azure governance and policy controls completely offline. Execution, management, and policy enforcement stay entirely within customer-operated facilities. 

This approach allows companies to maintain uninterrupted operations and keep identities protected within their established boundaries. Implementations scale from minor deployments to demanding and data-intensive workloads.

Improving resilience and AI data governance in tandem

Deploying AI in sovereign environments introduces high compute requirements. Foundry Local enables enterprises to run multimodal large models completely offline.

Utilising modern hardware from partners like NVIDIA, customers deploy AI inferencing on their own physical servers. This ensures data and application programming interfaces operate strictly within customer-controlled boundaries. Customers maintain complete authority over their hardware even as AI inferencing demands increase over time.

Gerard Hoffmann, CEO of Proximus Luxembourg, said: “The availability of Azure Local disconnected operations represents a breakthrough for organisations that need control over their data without sacrificing the power of the Microsoft Cloud.

“For Luxembourg, where digital sovereignty is not just a principle but a strategic necessity, this model offers the resilience, autonomy and trust our market expects. By combining Microsoft’s technological leadership with Proximus NXT’s sovereign cloud expertise, we are enabling our customers to innovate confidently—even in fully-disconnected mode.”

CIOs planning offline deployments must map workloads to the correct control posture based on risk, regulation, and specific mission requirements. Since disconnected environments are not one-size-fits-all, businesses can start fast with smaller deployments and expand their capabilities over time.

Implementing a disconnected private cloud with AI support answers a business requirement for highly-regulated sectors, enabling secure data governance even when external connectivity is absent.

See also: Deploying agentic finance AI for immediate business ROI

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