Skip to content

Run AI at the edge

Run models close to where data is created: on a single device with Foundry Local or a Copilot+ PC NPU, or on site with Azure Local, Azure Arc and Azure IoT Operations when connectivity, latency or sovereignty rule out a cloud round trip.

The problem

Factories, stores, vehicles and field sites produce data that is costly or slow to send to the cloud. Some sites lose connectivity, some decisions must happen in milliseconds, and some data must stay in a country or on premises by law or contract.

Running AI locally brings its own work: hardware choices, model packaging, updates across many sites and keeping a central view of what runs where.1

The approach

  • Single device or app: Foundry Local runs models on the device with no Azure subscription and no per-token costs, on Windows, macOS (Apple silicon) and Linux, using GPUs or NPUs when available and falling back to CPU. It offers an OpenAI-compatible API but is not designed as a server inference stack.
  • Windows PCs with NPUs: Copilot+ PCs have NPUs rated above 40 TOPS; Microsoft recommends Windows ML for inference on the device NPU, and exposes built-in AI features through Microsoft Foundry on Windows APIs.
  • On-site infrastructure: Azure Local runs Azure capabilities on customer-owned hardware, managed through Azure Arc, connected or disconnected; Microsoft prices it per physical core plus consumption charges. Disconnected operations have eligibility requirements, and Arc-enabled Kubernetes in disconnected mode is in preview.
  • Industrial data: Azure IoT Operations runs on Arc-enabled Kubernetes with an MQTT broker, connectors including OPC UA, and data flows to Microsoft Fabric OneLake, Event Hubs, Azure Data Lake Storage and Azure Data Explorer. Microsoft states it can operate offline for up to 72 hours, with possible degradation.
  • Fleet management: Azure Arc projects servers and Kubernetes clusters into Azure Resource Manager; core control plane features carry no extra cost, while services such as Defender for Cloud or Azure Monitor are billed normally.

When a simpler route is enough: if sites are reliably connected and latency is tolerable, calling a cloud model endpoint is easier to run than an edge stack.123456

Conceptual architecture

Run AI at the edge: conceptual architectureAI models & platformData & analyticsSecurity, identity &governanceCloud & hybridinfrastructureFoundry Local or Windows ML on Copilot+ PCs: On-device model inferenceFoundry Local or Windows MLon Copilot+ PCsMachines, sensors and cameras: Produce data on siteMachines, sensors andcamerasAzure IoT Operations (MQTT broker, OPC UA, data flows): Collects and routes industrial data at the edgeAzure IoT Operations (MQTTbroker, OPC UA, data flows)Microsoft Fabric OneLake and Azure data services: Cloud analytics when connectedMicrosoft Fabric OneLake andAzure data servicesAzure Arc: Central inventory, policy and access for edge resourcesAzure ArcArc-enabled Kubernetes: Runs edge workloads and modelsArc-enabled KubernetesAzure Local: Customer-owned hardware running Azure capabilitiesAzure Local
Diagram as a list
  1. AI models & platform

    • Foundry Local or Windows ML on Copilot+ PCsOn-device model inference
  2. Data & analytics

    • Machines, sensors and camerasProduce data on siteConnects to Azure IoT Operations (MQTT broker, OPC UA, data flows)
    • Azure IoT Operations (MQTT broker, OPC UA, data flows)Collects and routes industrial data at the edge
    • Microsoft Fabric OneLake and Azure data servicesCloud analytics when connected
  3. Security, identity & governance

    • Azure ArcCentral inventory, policy and access for edge resources
  4. Cloud & hybrid infrastructure

    • Arc-enabled KubernetesRuns edge workloads and modelsConnects to Azure Local
    • Azure LocalCustomer-owned hardware running Azure capabilities
Conceptual: one common way to arrange the parts, not a required design.6

Technologies and their roles

  • Microsoft Foundry2

    On-device runtime (Foundry Local)

    Runs models locally without an Azure subscription or per-token cost.

  • Windows 11 and Copilot+ PCs3

    NPU-equipped PCs

    Copilot+ PCs provide NPUs rated above 40 TOPS for local AI features.

  • Azure Local1

    On-premises infrastructure

    Runs Azure services on customer hardware, connected or disconnected.

  • Azure IoT Operations5

    Edge data plane

    Collects industrial data and sends it to cloud analytics, tolerating outages up to 72 hours.

  • Azure Arc6

    Central management

    Brings edge servers and clusters into Azure Resource Manager for policy and inventory.

What you need first5

  • A clear reason to run at the edge: latency, connectivity, sovereignty or cost
  • Hardware sized for the model (GPU, NPU or CPU) at each site
  • Arc-enabled Kubernetes for Azure IoT Operations
  • For disconnected Azure Local: meeting Microsoft's eligibility requirements
  • A process to update models and software across sites

Risks and how to reduce them

Using Foundry Local as a multi-user server2
Microsoft says it is not a server inference stack; use Azure Local or Kubernetes for shared inference.
Long outages exceed edge tolerance5
Azure IoT Operations is stated to run offline for up to 72 hours with possible degradation; plan for longer gaps.
Preview components in disconnected sites4
Check the status of each component; Arc-enabled Kubernetes in disconnected operations is in preview.
Unplanned Azure charges for edge resources6
Arc control plane features are free but services used on Arc resources are billed; budget for monitoring and security services.

Related

Sources

  1. What is Azure Local? Overview and key benefits (opens in a new tab)Microsoft · Vendor-reported
  2. What is Foundry Local? (opens in a new tab)Microsoft · Vendor-reported
  3. Copilot+ PCs developer guide (opens in a new tab)Microsoft · Vendor-reported
  4. Disconnected operations for Azure Local (opens in a new tab)Microsoft · Vendor-reported
  5. What is Azure IoT Operations? (opens in a new tab)Microsoft · Vendor-reported
  6. Azure Arc overview (opens in a new tab)Microsoft · Vendor-reported

Fill out the form below to request your copy.

Name(Required)