GPT-OSS models (e.g., gpt-oss-120b and gpt-oss-20b) can be deployed as serverless API deployments via Azure AI Foundry or on Azure Container Apps with serverless GPUs. These options allow you to consume the model without managing infrastructure, with autoscaling and pay-per-use pricing.
Currently, Azure OpenAI and GPT-OSS models can be provisioned in UAE North, but inference is not executed locally in that region. Instead, the actual processing is routed to other supported regions (e.g., West Europe or France Central). This means prompt and response data may leave the UAE, which is critical for compliance-sensitive workloads.
For GPT-OSS and Azure OpenAI services in UAE North, Microsoft does not guarantee that inference data remains within UAE unless the region has full model execution capability. While data at rest for the resource is stored in-region, processing may occur outside UAE
compliant alternatives for strict data residency:
If your requirement is “prompt and response data never leaves UAE”, you have two main options:
- Azure Local / Azure Arc-enabled AI Deploy GPT-OSS models on Azure Local or Foundry Local infrastructure. This allows you to run inference entirely on-premises or in a sovereign cloud setup, ensuring full control over data residency.
- Managed Compute in UAE Region (when available) GPT-OSS supports Managed Compute deployments, where you bring your own Azure GPU VMs in a specific region. If UAE North has GPU SKUs available, you can deploy GPT-OSS there for local inference. This is the recommended approach for data sovereignty.
- Microsoft has announced in-country processing for Microsoft 365 Copilot in UAE starting early 2026, signaling broader investments in sovereign AI infrastructure. Similar capabilities for Azure AI inference may follow, but no public timeline exists yet for GPT-OSS local inference in UAE North.
https://azure.microsoft.com/en-us/global-infrastructure/geographies/
https://www.microsoft.com/en-us/trust-center/privacy/data-location
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