Local AI on your own server
The language model runs on hardware that belongs to you. Nothing leaves the building, there is no third party in the chain, and you can pull the network cable and it still works.
When this is the right call
- Personnel files, applications, sick notes: everything an employee council would ask about.
- Client or patient data under professional confidentiality.
- Contracts, calculations and construction data you would not put in a foreign cloud.
- Industry rules or a customer contract that forbid processing outside your own systems.
- A location where the internet connection is not something you want to depend on.
How it runs
- 1 We clarify what really has to stay in the building, and what may not. Often it is less than expected.
- 2 We pick the hardware to fit. A single machine with a decent graphics card carries a small team.
- 3 I set up the model and the interface, and connect it to the programs you already use.
- 4 Handover: how to update it, how to see whether it is running, and who to call if it is not.
What you are trading away
This is not a free lunch. A model on your own hardware is usually a step behind the biggest cloud models on hard reasoning tasks. You buy hardware once instead of paying per use. Somebody has to keep it running. In exchange, no data leaves the building, there is no processor to contract with, no transfer to a third country to justify, and no price change from a provider you do not control. For summarising, drafting, searching your own documents and sorting things, the gap barely matters.
What it costs
Two separate things: the hardware, which you buy once and which depends entirely on how many people use it at the same time, and the setup, which is a fixed price for a defined scope. After that the running cost is electricity. There is no per-question billing and no subscription.
Common questions
Does this make me GDPR compliant?
It removes two of the hardest parts: there is no processor and no transfer to a third country, because the processing happens on your own hardware. Whether your overall process complies depends on much more than the model, and that assessment belongs to your data protection adviser.
Are local models worse?
On the hardest reasoning tasks, yes, noticeably. On everyday office work, barely. We test it with your real tasks before you buy anything.
What hardware do I need?
For one or two people a well equipped desktop machine is enough. For a team it becomes a server with a proper graphics card. We size it after the test, not before.
Can I mix local and cloud?
Yes, and it is often the sensible answer: sensitive things stay local, harmless things go to the cloud model that is better at them. The rule for which is which gets written down.
Who keeps it running?
You, your IT provider, or me on a maintenance arrangement. Whichever it is, it gets agreed in writing before it goes live, not afterwards.
Does this fit your case?
Write two sentences about what eats your time. I will tell you honestly whether it pays off.
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LAST UPDATED: SEPTEMBER 2026