Data residency
Where is information physically processed and stored?
Why private AI
Private infrastructure can give your organization more control over where AI runs, which models it uses, and how capacity is planned.
Control is more than a location
Keeping data in a particular country is one part of the picture. The operator, governing agreements, access rights, and dependence on external services also matter.
Private infrastructure can bring eligible inference into your environment. Security, governance, and sound operations still need to be designed and maintained.
Where is information physically processed and stored?
Which laws and organizational responsibilities govern it?
Who operates the machines, manages access, and decides what runs?
| Consideration | External AI services | Private AI infrastructure |
|---|---|---|
| Getting started | Often quick to adopt with limited hardware responsibility. | Requires design, installation, and an operating plan. |
| Models | Access to the provider’s available models. | Suitable open-weight models, subject to licenses and hardware capacity. |
| Control | Bounded by the provider’s service and agreements. | Direct control of the deployed environment and eligible processing. |
| Economics | Flexible usage pricing; can suit variable or modest demand. | Upfront investment; may suit sustained, well-utilized workloads. |
| Operations | Infrastructure largely managed by the provider. | Maintenance, security, capacity, and support must be planned. |
Further reading
The next chapter starts with your needs