Explainer
Data residency in AI
Keeping data, and the model that processes it, inside a defined jurisdiction, and why a model you own makes that guarantee simple.
In short
Data residency in AI means keeping your data, and the inference that processes it, within a defined geographic or legal jurisdiction. The most direct way to guarantee it is to run a model you own inside your own perimeter, rather than sending data to a third-party model hosted elsewhere.
Why residency is hard with external APIs
Even when a provider offers regional hosting, your data is still processed by a model and organisation outside your control, often with sub-processors and terms that can change. For regulated data, that uncertainty is the problem.
A sovereign model removes the uncertainty: if the weights are yours and the model runs inside your perimeter, the data and its processing simply never leave the jurisdiction you choose.
Locai's residency options
- On-premise: Runs entirely in your own data centre.
- Your cloud tenant: Deployed inside your existing cloud region and account.
- Air-gapped: Fully isolated for the most sensitive data.
- UK sovereign cloud: Locai-operated, UK-resident hosting where you still own the model.
What this looks like with Locai
Compliance is easier to evidence when the model, the data, and the logs are all things you actually own, not things a vendor describes in a whitepaper.
Locai Labs believes organisations should own their intelligence. Renting access to a general-purpose model that lives on someone else's servers is fine for low-stakes work; for the AI that touches your data, your customers and your decisions, the model itself should be yours. That is the bet behind everything we build.
It is also a bet that an expert model beats a generalist on the work that actually matters to your business. A smaller model trained on your data, your language, your workflows and your edge cases routinely outperforms much larger generalists on the tasks you care about, and it does so on infrastructure you control. The goal is not the biggest model; the goal is the right model for your business.
And it is deployed sovereignly: an owned model that runs inside your perimeter, on-prem via Locai One, in your private cloud tenant, in a UK sovereign cloud, or fully air-gapped, depending on your residency and security requirements. Your prompts, your documents and your outputs stay inside your environment, under UK jurisdiction, with a data path designed to fit GDPR and the procurement standards regulated organisations are held to.
Frequently asked questions
Does regional cloud hosting guarantee residency?
It helps, but the model and provider are still external and governed by their terms. Owning the model and running it in your perimeter gives a stronger, simpler guarantee.
How does residency relate to GDPR?
Residency is a key part of demonstrating GDPR compliance for personal data; keeping inference onshore avoids many cross-border transfer questions.
Can I choose where my Locai model runs?
Yes, on-prem, in your cloud tenant, air-gapped, or in Locai's UK sovereign cloud, whatever meets your residency requirements.
Book a sovereign AI briefing
A 30-minute session on owning your model: deployment options, the data path, and a clear cost range for your use case.