Microsoft's framework for AI sovereignty offers governments a path to local control without cutting themselves off from global innovation. The company calls it AI sovereignty, and it’s more than a marketing term. It’s a structured framework, backed by real infrastructure investment and strategic partnerships, that could shape how governments write AI policy for years to come. In February 2026, Microsoft announced support for large AI models to run in completely disconnected environments, meaning a government deployment could function with zero connection to Microsoft’s own networks if required. On the European side, Microsoft expanded its partnership with French AI company Mistral in July 2026, specifically to address European sovereignty requirements.