Business AI

Enterprises Shift to On-Premises AI for Data Sovereignty

A new report from Iron Software highlights growing demand for air-gapped solutions driven by security, compliance, and intellectual property concerns.

Olivia Sharp 2 min read 442 views
Free
Driven by data sovereignty and security concerns, enterprises are increasingly choosing on-premises, air-gapped AI solutions over cloud-connected models, according to a September 3 report.

The Drive for Control

As enterprises adopt artificial intelligence, a growing number are choosing on-premises solutions over cloud-connected models to maintain control over their data. A press release from Iron Software on September 3, 2025, highlighted an "unprecedented demand" for air-gapped software that operates without sending sensitive information to external AI providers.

This trend is driven by a desire for data sovereignty. Many companies are concerned that using cloud-based AI tools requires transmitting proprietary data to third-party servers, where it could be exposed to security risks or used in future model training. On-premises solutions allow organizations to leverage AI …

Archive Access

This article is older than 24 hours. Create a free account to access our 7-day archive.

Share this article

Related Articles