Teradata (NYSE: TDC) has announced a pair of sovereign deployment options for governments and enterprises that want tighter control over the data, AI and technology behind critical operations: expanded capabilities for Teradata Factory with AI Studio, and Teradata Sovereign Cloud on Google Distributed Cloud air-gapped.
Teradata Factory is an integrated hardware and software rack that brings a private data and AI environment into customer-controlled, on-premises infrastructure. The expanded AI Studio capabilities include Tera, an agentic coworker for enterprise data work, AgentStack for building and operating agents, model services with bring-your-own-model support, pipelines for multimodal unstructured data and vector embeddings, and native notebooks built on Ray and Arrow. They will be available in the first quarter of 2027.
Teradata Sovereign Cloud on Google Distributed Cloud air-gapped runs Teradata's analytics layer inside an environment with no connection to the public internet, operated by the customer. Teradata cites use cases such as operational reporting, mission analysis, intelligence fusion, training and simulation analytics, and defence logistics. It is in private preview.
Teradata frames sovereignty on three levels: data (where it lives and who can access it), operational (who controls the environment and whether it can run independently) and digital (which technologies and AI models an organisation depends on). It cites a 2026 BARC study of 320 decision-makers, in which 62% named data and AI in core business processes as a key driver of sovereignty requirements, and an IBM study finding that 91% of executives do not fully understand their dependencies across AI vendors, models and infrastructure.
Sumeet Arora, Chief Product Officer at Teradata, said sovereignty is no longer a single location but an architecture that spans public cloud, sovereign cloud and on-premises infrastructure. He said: “Teradata is uniquely built for that reality. We can run in all of those environments, connect them through Teradata Fabric without requiring data to move, and give organizations the freedom to choose the AI models and infrastructure that work for them.”
Muninder Singh Sambi, VP of Product Management at Google Distributed Cloud, said: “By combining Google Distributed Cloud's sovereign infrastructure with Teradata's AI and knowledge capabilities, we are giving enterprise customers in regulated industries the ability to innovate without sacrificing control over their data.”
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