Amazon Launches New AI Technology for Data Sovereignty

Dec 03, 2025
Technology

Illustrative Photo: Amazon (Collected)

Staff Report, PNN

American e-commerce and cloud giant Amazon announced a new product, the “Artificial Intelligence Factory,” allowing large corporations and governments to operate Amazon’s AI systems in their own data centers. According to Amazon Web Services (AWS), customers provide power and infrastructure, while AWS handles installation, management, and integration with other cloud services.

The initiative targets organizations concerned with data sovereignty, ensuring that information is not accessible to competitors or foreign entities. Using the on-premises AI factory, data never leaves the customer’s control, and hardware is not shared.

The project is a collaboration with Nvidia, enabling customers to use the latest Blackwell GPUs or Amazon’s Trainium3 chips. It integrates with AWS’s networking, storage, data, and security systems and can connect with Amazon’s Bedrock (model selection and management) and SageMaker AI (model building and training) services.

Amazon is not the only company using Nvidia AI factories. In October, Microsoft announced a global AI factory in its data centers to run OpenAI’s operations, using Nvidia AI factory technology in new data centers in Wisconsin and Georgia. Microsoft also launched Azure Local to ensure local data sovereignty.

Experts note that leading cloud providers are investing in both corporate data centers and hybrid cloud solutions, returning focus to private enterprise data facilities similar to trends seen in 2009.