Microsoft Corporation (NASDAQ:MSFT) is pushing deeper into digital sovereignty. The software giant announced a major expansion of its Sovereign Cloud platform that allows enterprises, governments and regulated industries to run large AI models and core productivity tools in fully disconnected environments.



Douglas Phillips, President and Chief Technology Officer of Microsoft Specialized Clouds, detailed three new capabilities on Monday. The updates center on Azure Local disconnected operations, Microsoft 365 Local disconnected and an expansion of Foundry Local to support large, multimodal AI models — all operable with zero cloud connectivity.



Azure Local disconnected operations and Microsoft 365 Local disconnected are now available worldwide. Large model support through Foundry Local is available to qualified customers.



<h2>Why It Matters for Regulated Industries</h2>



The announcement targets organizations operating under strict regulatory, classified or isolated conditions where external cloud dependencies are either unacceptable or intentionally restricted. 



Microsoft’s Sovereign Private Cloud unifies Azure Local, Microsoft 365 Local and Foundry Local into a stack capable of running across connected, hybrid and fully disconnected modes.



Foundry Local will leverage modern GPU infrastructure from partners including NVIDIA Corporation (NASDAQ:NVDA), enabling local inferencing of multimodal, large-scale models entirely within customer-controlled hardware and data boundaries.



<h2>Microsoft 365 Productivity Layer Goes Offline</h2>



Microsoft 365 Local disconnected delivers Exchange Server, SharePoint Server and Skype for Business Server — all supported through at least 2035 — directly inside a customer’s sovereign private cloud, keeping collaboration tools operational even when fully offline.



MSFT Price Action: Microsoft shares were up 0.24% at $385.38 at the time of publication on Tuesday, according to Benzinga Pro data.



Image via Shutterstock

MSFT

NVDA

NVDX

Microsoft Corporation is expanding its Sovereign Cloud platform, enabling enterprises and governments to run AI models and productivity tools in fully disconnected environments. The new capabilities include Azure Local disconnected operations and Microsoft 365 Local disconnected, now available globally. This expansion targets regulated industries that require strict data control. Foundry Local will support large AI models using NVIDIA's GPU infrastructure, ensuring operations without cloud connectivity. Microsoft 365 Local disconnected will provide essential collaboration tools offline until at least 2035. Microsoft shares rose 0.24% to $385.38 following the announcement.

- Microsoft Corporation is expanding its Sovereign Cloud platform, enabling enterprises and regulated industries to operate large AI models in disconnected environments.  
- The new capabilities include Azure Local and Microsoft 365 Local disconnected operations, now available globally, alongside Foundry Local for large model support available to select customers.  
- This expansion addresses regulatory needs, allowing organizations to maintain operational independence without reliance on external cloud services.

benzinga_article

Microsoft

NVIDIA

T-Rex 2X Long NVIDIA Daily Target ETF

Global X Data Center & Dgtl Infrs ETF

iShares Expanded Tech Software Sector ETF

Direxion Daily MSFT Bull 2X Shares

YieldMax MSFT Option Income Strategy ETF

Pacer Data & Infrastructure Real Estate ETF

Global X Cloud Computing ETF

ISHRS S&P Glb It

SPDR S&P Software

iShares US Digital Infrastructure and Real Estate ETF

GraniteShares 2x Long MSFT Daily ETF

T-Rex 2X Long Microsoft Daily Target ETF

Spdr Select Tech

Direxion Daily MSFT Bear 1x Shares

Kurv Yield Premium Strategy Microsoft MSFT ETF

Microsoft Expands Sovereign Cloud With Offline AI Capabilities, Disconnected Operations