Updated 24 February 2026 at 19:33 IST

Microsoft CEO Satya Nadella Announces New Capabilities Across Its Sovereign Cloud

Microsoft has launched new capabilities in its across Microsoft Sovereign Cloud to enable customers to bring core productivity workloads and AI models into fully disconnected sovereign environments.

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Microsoft Sovereign Cloud | Image: Reuters

Microsoft has launched new capabilities in its across Microsoft Sovereign Cloud to enable customers to bring core productivity workloads and AI models into fully disconnected sovereign environments.

Microsoft CEO Satya Nadella said, "We’re building the most comprehensive digital sovereignty platform to help countries and organizations meet their regulatory, security, and operational needs."

"Today in London, we announced new capabilities across Microsoft Sovereign Cloud that enable customers to bring core productivity workloads and AI models into fully disconnected sovereign environments, with more choice and greater local control," he said.

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To support these confidential environments, Microsoft now offers full stack capabilities that support customers across connected, intermittently connected and fully disconnected modes. It's expected to primarily benefit players in defence sector, governments and those under strict security regulations.   

The latest upgrades announced today include: 

Azure Local disconnected operations (now available) – Organizations can now run mission-critical infrastructure with Azure governance and policy control, with no cloud connectivity, optimizing continuity for sovereign, classified or isolated environments.

Microsoft 365 Local disconnected (now available) – Core productivity workloads, Exchange Server, SharePoint Server and Skype for Business Server can run fully inside the customer’s sovereign operational boundary on Azure Local, keeping teams productive even when disconnected from the cloud.

Foundry Local adds modern infrastructure capabilities and support for large AI models – Organizations can now bring large AI models into fully disconnected, sovereign environments with Foundry Local. Using modern infrastructure from partners like NVIDIA, customers with sovereign needs will now be able to run multimodal models locally on their own hardware, inside strict sovereign boundaries enabling powerful, local AI inferencing in fully disconnected environments. 

Published By : Nitin Waghela

Published On: 24 February 2026 at 19:33 IST