Once you've decided to keep AI private, the next question is where it should run. There are three main options, on-premise, private cloud, and European cloud, and each trades control, cost, and convenience differently. This guide helps you choose.
The three deployment models
On-premise
The AI runs entirely on hardware inside your own data centre or offices. Nothing leaves your network. This is the strictest, most controlled option, favoured by organisations with the tightest confidentiality or regulatory requirements.
Private cloud
The AI runs in a dedicated, isolated environment hosted for you, logically separated from other tenants, managed on your behalf. You get much of the control of on-premise with far less operational burden.
European cloud
The AI runs on a European cloud provider such as Scaleway. Your data stays within the EU and under European law, while you benefit from the speed and elasticity of managed cloud infrastructure.
How they compare
Control over data
On-premise offers maximum control: the data physically never leaves your premises. Private cloud is very close behind, in a dedicated isolated environment. European cloud keeps data in the EU under GDPR, which is sufficient for most organisations but involves a trusted hosting partner.
Cost and effort
On-premise requires buying and maintaining hardware, plus the staff to run it, a larger upfront and ongoing investment. Private and European cloud shift that to a predictable operating cost and remove most of the maintenance work.
Speed to start
European cloud is typically the fastest to deploy, since no hardware needs to be procured. On-premise takes longest because of hardware lead times and setup.
Scalability
Cloud options scale up and down easily as demand changes. On-premise scaling means buying more hardware.
How to choose
The right choice comes down to your constraints, not a universal "best." A few guidelines:
- Choose on-premise if you operate under the strictest confidentiality rules, already run your own data centre, or have a policy that sensitive data must never leave your walls.
- Choose private cloud if you want on-premise-level isolation without managing hardware yourself, a common sweet spot for mid-sized firms.
- Choose European cloud if EU data residency satisfies your compliance needs and you value fast deployment and easy scaling.
Importantly, the platform itself is identical across all three. You can start in the European cloud and move on-premise later, or run different workloads in different places. The deployment model is a decision about location and control, not about features.
A note on compliance
All three models can be run in a fully private way that keeps data under your control and within Europe. The difference is the degree of physical and organisational separation. For a deeper look at the controls that make any of these enterprise-ready, see our guide to secure AI in enterprise environments.
The takeaway
There's no single right answer, only the right answer for your risk profile, resources, and timeline. The good news is that private AI is flexible: you don't have to compromise on control to get a fast start, and you're never locked into one location.
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