The rise of local Cloud infrastructure.
As cloud adoption accelerates across industries, organisations are demanding more control over where and how their data is stored and processed. Whether driven by compliance, performance, or strategic sovereignty, the need for localised cloud infrastructure is clear.
Azure Local is Microsoft’s answer to this demand—offering the full power of Azure, hosted within national borders. For organisations in regulated sectors like healthcare, defence, and finance, Azure Local provides a compelling path to modernisation without compromising on control.
So, what is Azure Local? And how does it differ from Sovereign Cloud?
What is Azure Local?
Azure Local is a Microsoft initiative that delivers Microsoft Azure services from in-country data centres, ensuring that data remains within specific geographic boundaries.
It’s not a separate cloud—it’s the same Azure platform, but deployed locally to meet the needs of organisations with strict data residency, latency, or compliance requirements.
With Azure Local, you get:
- The same APIs, SDKs, and services as global Azure
- Local data residency and processing
- Integration with Microsoft 365 and other Microsoft services
- A foundation for sovereign and regulated workloads
While sovereign cloud setups are completely isolated from other cloud networks (ideal for organisations with top-secret data), Azure Local remains connected to the global Microsoft Azure network from your local data centre.
This allows organisations to get the upsides of Azure services and sovereign cloud’s data residency, compliance, and low latency, without complete isolation.
5 benefits of Microsoft Azure Local.
Azure Local isn’t just about geography—it’s about strategic control. Here’s what makes it stand out:
1. Data residency (your data stays within the UK)
Azure Local ensures data is stored and processed within national borders, helping meet GDPR, NIS2, and other local regulations.
This is crucial for organisations handling sensitive information.
2. Low latency (things run faster)
It improves performance for users and applications by reducing the physical distance between compute and consumption.
In other words, things run faster.
3. Enhanced compliance (GDPR, etc)
Azure Local also simplifies alignment with industry-specific standards in healthcare, finance, defence, and the public sector.
4. Native integration with M365 and Azure AI services
It works natively with Microsoft 365, Azure AI services, and other similar services—no need to re-architect.
5. Developer familiarity (less training needed)
Azure Local use the same tools, pipelines, and services you already know from global Azure. You don’t need to retrain staff on a completely new system.
Hosting M365 workloads with Azure Local.
One of the standout features of the Sovereign Cloud is its ability to host Microsoft 365 (M365) workloads.
M365, encompassing services such as Exchange Online, SharePoint Online, and Teams, is essential for modern workplaces. The integration of M365 within Azure Local means that organisations can now:
- Enable secure, compliant collaboration
- Keep sensitive communications and documents within national borders
- Meet sector-specific data handling requirements without sacrificing productivity
For industries like healthcare and education, this is a major step forward in balancing usability with compliance.
Built-in compliance and support mechanisms.
Azure Local is designed to help organisations meet the stringent compliance requirements of the UK, EU, and other regulated environments.
Whether you’re navigating GDPR, NIS2, or sector-specific mandates, Microsoft provides a robust set of tools and frameworks to support your compliance journey.
1. Data residency
All data is stored and processed within designated geographic regions, ensuring alignment with local data sovereignty laws.
2. Advanced encryption
Industry-leading encryption protects data both at rest and in transit, safeguarding sensitive information from unauthorised access.
3. Regular audits & assessments
Microsoft conducts routine compliance checks and assessments to ensure services remain aligned with evolving regulatory standards.
4. Dedicated compliance teams
Access to specialised teams who provide expert guidance on navigating complex regulatory landscapes and achieving certification.
5. Sovereign guardrails & implementation guidance
Pre-configured environments and best practices help IT teams, security officers, and decision-makers build and maintain compliant cloud architectures—step by step, from planning to deployment.
Azure Local’s key use cases across industries.
Microsoft’s Sovereign Cloud offering is particularly beneficial for industries that require stringent security and compliance measures.
Here are some key use cases:
Defence
The Defence sector often deals with highly classified information that necessitates robust security protocols, especially when sharing this information with other trusted parties.
Microsoft’s Sovereign Cloud ensures that sensitive military data remains within national borders, safeguarded by advanced encryption and rigorous compliance standards.
This assurance is critical for national security, enabling secure communication, sharing and data handling across defence networks.
Healthcare
In the Healthcare industry, patient data privacy is paramount.
The Sovereign Cloud allows healthcare providers to store and process patient information within local jurisdictions, adhering to strict data protection laws such as GDPR.
This capability enhances trust and confidence among patients, ensuring their sensitive medical information is handled with the utmost care and security.
Financial Services
Financial institutions manage vast amounts of sensitive customer data, making compliance with local data residency laws essential.
The Sovereign Cloud offering provides financial services with the tools to securely host and process customer information, meeting regulatory requirements while maintaining high standards of data protection.
Azure Local, brought to you by ANS.
At ANS, we help organisations unlock the full potential of Microsoft Azure Local through our UK-based, award-winning, security-cleared managed services. Our teams are experienced in deploying and managing cloud environments for highly regulated sectors.
Here’s what you can expect:
- Security-Cleared Engineers: Supporting workloads up to “Secret” classification
- 24/7 Monitoring & Incident Response: Minimising downtime and risk
- Compliance Expertise: Navigating complex regulatory landscapes
- Sustainable Infrastructure: Delivered from 100% carbon-neutral data centres
We don’t just deploy Azure Local—we optimise it for performance, security, and long-term value.
So, if you’re looking to speak to a Microsoft expert about Azure Local managed services, book in a call today.