Local AI Environment

Maximum Data Privacy & Control, On Your Terms – Run powerful open-source AI models entirely on dedicated hardware within your own premises

When Data Privacy is Non-Negotiable

While cloud AI offers power and scale, certain situations demand absolute data control and privacy. Processing highly regulated data (HIPAA, financial secrets)*, safeguarding critical intellectual property, or operating in environments with limited connectivity requires a different approach. For consultants, advisors, and organizations where data cannot leave the premises, Millstone AI Solutions offers the Local AI Environment.

This solution provides a secure, self-contained, high-performance computing system deployed directly within your physical location. Designed to be plug-and-play, our standard configuration requires no complex existing IT infrastructure, making powerful private AI accessible even without a dedicated server room. It runs cutting-edge open-source Large Language Models (LLMs) locally, ensuring your sensitive data*, prompts, and AI-generated outputs remain entirely under your control†, never transmitted to external services for core processing.
View Solution Brief

Key Features & Unmatched Privacy Advantages

Dedicated On-Premise Hardware

Operates on carefully selected, high-performance hardware optimized for local AI workloads and deployed at your site
You maintain complete physical control over the system
Standard configuration supports small team usage with enhanced hardware configurations available for larger teams

Hardened Host & OS Security

Built on a secure operating system baseline with essential security hardening
Full Disk Encryption enabled by default, protecting data at rest
Host firewall configured with a default-deny policy
Secure login configuration with unnecessary services disabled

Secure & Containerized Application Stack

Core components run in isolated Docker containers
Includes user-friendly interface (Open WebUI) and the Ollama LLM framework
Optional databases for RAG capabilities
Utilizes official or well-vetted container images to minimize risks

Local LLM Processing

Utilizes efficient frameworks like Ollama to run powerful open-source LLMs directly on the device's GPU
Core AI inference happens locally - sensitive data is not sent to external cloud APIs
Access to leading open-source models like Llama, Mistral, and Qwen

Network Isolation & Control

Integrates into your Local Area Network (LAN)
Core functionality does not require internet access
Outbound connections limited to essential services
Optional secure remote access via hardened methods

Data Residency & Control

All your data resides exclusively on the encrypted physical storage within your premises
Data never leaves your control
Complete oversight of data processing pathways
Your organization is solely responsible for the physical security of the hardware at your premises.

What's Included in the Baseline Setup

Millstone AI's standard engagement ensures your Local AI Environment is ready to use securely:
OS Installation & Hardening: Installation of the latest stable OS version, application of all security updates at time of setup, and implementation of baseline security hardening measures (firewall, encryption, secure login, etc.).
Core Software Stack: Installation and configuration of Docker Desktop and the Ollama LLM serving framework.
LLM & Application Deployment: Loading of recommended open-source LLMs and deployment of core containerized applications (e.g., Open WebUI) via Docker Compose.
Secure Configuration & Handover: Creation of initial Admin/User accounts with strong passwords, secure handover of credentials, and provision of the encryption recovery key.
This establishes a functional and secured starting point. Ongoing maintenance responsibilities are defined by your chosen management option.

Benefits for Your Organization

Ultimate Privacy & Confidentiality

The ideal solution for processing HIPAA-protected data, financial secrets, sensitive legal documents, or proprietary R&D information*

Simplified Compliance Path

Demonstrating data control and residency for regulations (HIPAA, GDPR, etc.) is significantly easier when processing occurs entirely on-premise*

Predictable & Transparent Costs

Primarily involves a one-time hardware investment and setup/support costs. No recurring, unpredictable per-token or per-query fees for core AI processing

No Server Room Needed

Our standard configuration is designed for easy setup in standard office environments, removing the need for complex IT infrastructure

Hardware Flexibility

Utilize the powerful hardware for other demanding tasks, development work, or running custom containerized services 24/7 without server cost concerns

Offline Operation

Core AI functions can operate without an active internet connection, ideal for environments with limited connectivity or air-gapped systems

How It Works

01

Local Access

Users connect to the application interface (e.g., Open WebUI) via its IP address on your internal network (LAN)
02

Internal Communication

The application sends prompts internally to the Ollama service running on the same machine
03

On-Device Processing

Ollama utilizes the local hardware (CPU/GPU) to process the prompt using the selected open-source LLM
04

Data Stays Local

The response is generated and returned to the application, potentially stored on the encrypted SSD – all within the physical device

Ideal Use Cases

Healthcare Providers
Analyzing patient data or clinical notes under HIPAA regulations
Financial Firms
Processing confidential client financial data or proprietary algorithms
Legal Practices
Reviewing sensitive case files or discovery documents with absolute confidentiality
R&D Departments
Working with valuable intellectual property or trade secrets
Regulated Industries
Meeting strict data residency and processing requirements
Air-Gapped Operations
Businesses needing offline AI capabilities with no external connections
Consultants & Advisors
Requiring the highest level of assurance for client data confidentiality
Your organization is solely responsible for the overall compliance program, implementing necessary organizational/physical controls, risk assessment, and ensuring the complete solution meets regulatory requirements (e.g., HIPAA, SOC 2).

Hardware & Management Options

We offer flexibility to meet your specific needs and existing infrastructure:

Hardware Options:

Choose our standard high-performance configuration suitable for many teams, or discuss enhanced/enterprise options (rack servers, specialized GPUs).

Procurement:

Millstone AI can procure and pre-configure the hardware (Default), or you can procure hardware based on our specifications.

Management Options:

Fully Managed Solution

We handle both initial setup and ongoing management of your secure environment, allowing your team to focus exclusively on leveraging AI capabilities rather than infrastructure maintenance.

Setup with Client Management

We establish the initial secure environment and provide comprehensive documentation for your team to assume ongoing management responsibilities after deployment.
For a detailed breakdown of responsibilities under each model, please refer to our Local AI Environment Service Overview & Responsibility Matrix PDF.

Ready for Maximum AI Privacy and Control?

Take control of your sensitive data with the Local AI Environment. Innovate with powerful AI, confidently knowing your information stays securely within your own walls
Work With Us
For Informational Purposes Only. This website provides a general overview. All services are subject to definitive agreements (MSA & SOW). Your organization is solely responsible for its own regulatory compliance. Please review our full Terms of Service and detailed service documentation for complete details, limitations, and responsibilities. Features & specifications subject to change.
* Compliance Responsibility: Millstone AI Solutions provides secure environments and technical features that can support your organization's compliance efforts (e.g., regarding HIPAA or data residency). However, use of our services does not automatically guarantee compliance, nor does Millstone AI Solutions assume your organization's compliance obligations. Achieving and maintaining compliance certification and adherence is the sole responsibility of your organization, requiring your own policies, procedures, audits, and risk assessments.
† Physical Security is Your Responsibility: While Millstone AI Solutions secures the system's configuration, your organization is solely responsible for the physical security of the hardware at your premises, including preventing unauthorized access, theft, or tampering.